The Legal System and ADR Analysis

MEMORANDUM
TO: FROM: DATE: SUBJECT: CC: All Employees Ashley Watson September 23rd, 2013
The Legal System and ADR Analysis

Judith Gray

Efficiency is the key component hen considerin! options for handlin! business disputes" #he court system can be used to handle many state le$el %uarrels" &f the matter at hand is too se$er, le!al matters can reach as hi!h as an appeal to the state's Supreme (ourt" #he most efficient ay for business to handle disa!reements ould include usin! an Alternati$e )ispute *esolution method" #he methods that ill be discussed to e+tin!uish the flames in the follo in! scenario are !oin! to be ,e!ation and Arbitration Scenario A local bridal shop has been an authori-ed dealer for .ori /ee dresses for o$er 12 years" #his particular bridal shop as the only store to sell .ori /ee dresses in plus si-es and that is hat makes the bridal shop so e+clusi$e in the city" #he contract bet een .ori /ee and the bridal shop states that once an order for a dress has been made, .ori /ee is to ship it ithin three months" #his !i$es the dress desi!ner time to make the alterations and other specifications re%uested" #he typical order that comes from this $endor totals to about 20 eddin! !o ns and 00 bridesmaids' dresses" #his particular batch only had 12 bridal !o ns and 12 bridesmaids' dresses" .ori /ee contacted the dealer and informed the o ner that the order ould not be shipped until 0 months later" #he o ner of the local bridal shop as embarrassed and upset

The Legal System and ADR Analysis

because he as !oin! to lose a lot of money if .ori /ee did not keep their end of the bar!ain" #he dispute came in hen .ori /ee debited the local desi!ner dress dealers account for the order as if it ere !oin! to be shipped ithin three months as promised in the contract" &n most cases, businesses ould attempt to resol$e this issue in court" 3o e$er, this case in particular can be $ery costly to both parties in$ol$ed" #here is a lot of paper ork that has to be filed" Attorneys ha$e to be hired, and schedulin! can be an issue for both parties" &n this scenario, both parties can suffer financial and non4financial losses" #he local bridal shop can lose its reputation for producin! this particular dress faster than any other bridal store in the city" #he o ner ill ha$e to ork t ice as hard and possibly reduce prices drastically to earn the trust of prospecti$e clients" &f this case !ets too bad, the 5.om and 6op7 business can lose e$erythin!" .ori /ee, on the other hand, can lose its most $aluable asset, the company's reputation" .ori /ee thri$es on thrillin! ne brides ith their stunnin! dresses, especially those ho are not poster thin" #his case could ruin the company's ima!e and ima!e is e$erythin! in business these days" #he most efficient method of resolution for this case ould be to ne!otiate" ,e!otiation is a procedure hereby the parties to a le!al dispute en!a!e in discussions to try to reach a $oluntary settlement of their dispute 8(heesman, 3"*" 20139" .ori /ee can afford hi!h po ered la yer and can spend the amount of money needed to protect its ima!e" #he local bridal $endor ho e$er, does not ha$e access to limitless amounts of money to pay for a tem to fi!ht such a lar!e company" .any courts re%uire this method of resolution to be attempted prior to !oin! to trial, so this ould not slo the process do n if it ere to !o to trial"

The Legal System and ADR Analysis

&n arbitration, the parties choose an impartial third party to hear and decide the dispute" #his neutral party is called the arbitrator" Arbitrators are usually members of the American Arbitration Association 8 AAA9 or another arbitration association 8(heesman, 3"*" 20139" #his ould also be an effecti$e ay for the t o businesses to resol$e the issue at hand" #he $endor and the bridal retail !iant ha$e a contact that has yet to e+pire" An arbitrator ould assist both companies in comin! to an a!reement on ho to handle this situation"

The Legal System and ADR Analysis

*eferences (heeseman, 3"*" 820139" Business law: Legal environment, online commerce, business ethics, and international issues 8:th ed"9" ;pper Saddle *i$er, ,J< 6rentice 3all"