Litigation and Arbitration Processes in Business Paper Example

Part I

Alternative Dispute Resolution

In most cases, a contract requiring two or more parties to involve different countries requires a proper analysis of litigation and arbitration processes (Ahmed & Kothari, 2008). The essential rule that guides business affiliations is a contract which indicates a deliberate talked or composed course of action or assertion that outlines the work, occupancy or deals that is consequently enforceable by law (Cheeseman, 2015). Solar Co and XYZ portray to be in hiccups concerning the contract that they signed and the damages that occurred due to the lack of secure operation by XYZ. In XYZ and Solar Co issue, Legalities, need to be observed to ensure that the violated contractual agreement ends in a situation not harming both XYZ and Solar Co since harm might cause irreversible damage. By definition, litigation denotes an old means of determining a due process for arriving at a reasonable and justifiable solution to a disagreement between two parties (Ahmed & Kothari, 2008). On the other hand, arbitration is a process that involves two parties in dispute in the method of determining the party that is in agreement of working with a disinterested third party to come up with a solution for a given conflict.

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Solar Co. should consider an amicable way of solving the dispute with XYZ company since litigation process might result in long court processes due to lack of admissible evidence. Solar Co. should also understand that a contract resolution clause should be a legal binding that should state the actions the non-compliant to the protocol made (Cheeseman, 2015). The clause binds the non-compliant to the damages the violation cause to the parties involved thus compelling them to take responsibility for their actions and violation of the contract. Since the process might end up taking too long to be solved, Solar Co should consider Alternative Dispute Resolution abbreviated as ADR that is a perfect way for settling disputes between parties without necessarily seeking for the court's intervention that sometimes fails to do justice to the parties involved (Cheeseman, 2015). ADR is usually confidential, unlike trials that put the matters in the bracket as open as possible. Since XYZ and Solar Co had made a contract of enhancing the advertising strategy, the confidentiality required concerning the business model of Solar Co needs to be upheld thus ADR may be liable for the contracts dispute resolution.

If I were advising XYZ, I would call for the litigation process since Solar Co insists on compensation yet XYZ is promising to resurface the damage and ensure that the contract deliverables are achieved. Since there was no stipulation of non-compliance agreement, then XYZ will be at a safe ground for not compensating Solar Co if they insist about compensation (Coates, 2014). Contract resolution clause should be a legal binding that should state the actions the non-compliant to the protocol made. The clause binds the non-compliant to the damages the violation cause to the parties involved thus compelling them to take responsibility for their actions and violation of the contract. Carrying out businesses requires the parties to have a clear understanding of the legal terms.

Part II

Arbitration Procedure and Its Enforceability

According to the Federal Arbitration Act, arbitration is a way of resolving disputes outside the court's jurisdiction. In that perspective, the parties communicate their conflicts to a legit arbitrator who then reviews the evidence, shares with the parties and then decides the evidence submitted to them. An arbitrator is a legal person as outlined in the contract disputes clause and is responsible for resolving contractual disputes by making a final resolution to the conflict. There has been an overhaul of debate concerning the legalization of the antitrust law concerning arbitration since the directive has its perils to the general society regarding the fundamental anti-trust law. From the arbitral procedures, the antitrust law might be vindicated depending on the arguments regarding the extent of contractual agreements between parties.

Recommendation

According to Coplan (2017), arbitration offers businesses a fair ground for arriving at justifiable decisions. Since arbitration involves the parties involved in a contractual agreement and a non-interested party in coming at a proper resolution, then it is the viable approach towards resolving Solar Co and XYZ agreement hiccups. Additionally, arbitration is a process that involves two parties in dispute in the method of determining the party that is in agreement of working with a disinterested third party to come up with a solution for a given conflict. Better and quick solution concerning the damages and ways of resettling the damages can be achieved through arbitration, unlike litigation which will require fine details of the contract and the provisions made before signing.

An arbitrator carries can enhance Solar Co and XYZ negotiations towards solving the damage caused by the hacking. Since litigation might subject Solar Co to a long-standing debate in court towards achieving legitimate grounds for compensation, arbitration is the most suitable approach towards solving the dispute (Coplan, 2017). An arbitrator involved in the negotiations to determine a proper solution to the damage that Solar Co and XYZ seeks to terminate will enable the two parties to solve their issues with legal binding but outside the court. It is evident that arbitration is the viable way of solving future contract disputes for Solar Co.

References

Ahmed, B., & Kothari, S. (2008). Doing business in the United Arab Emirates. Dubai: Afridi & Angell Legal Consultants.

Cheeseman, H. R. (2015). Legal Environment of Business: Online Commerce, Ethics, and Global Issues. Prentice Hall.

Coates IV, J. C. (2014). Cost-Benefit Analysis of Financial Regulation: Case Studies and Implications. Yale LJ, 124, 882.

Coplan, K. S. (2017). The Missing Element of Environmental Cost-Benefit Analysis: Compensation for the Loss of Regulatory Benefits. Geo. Int'l Envtl. L. Rev., 30, 281.