The purpose of this assignment is to analyze and select an appropriate method of
ID: 387175 • Letter: T
Question
The purpose of this assignment is to analyze and select an appropriate method of alternative dispute resolution (ADR) for a business dispute, to examine unethical business behavior, and to develop risk management procedures to avoid or reduce claims and litigation.
Read the following scenario:
Dazzling Dough Co. sells pizza dough to local pizza restaurants. Most of the restaurants buy at least 150 pounds of pizza dough from Dazzling Dough Co. in each order. Jerry's Pizza contacted Dazzling Dough Co. to purchase 200 pounds of pizza dough, along with some other items. Dazzling Dough Co. sent Jerry's Pizza a written contract, prepared by Dazzling Dough Co.'s lawyer, stating that "Jerry's Pizza agrees to purchase 200 pounds of pizza dough, pizza toppings, desserts and soft drinks for $30,000." Jerry's Pizza signed and returned the contract.
A few days later, Dazzling Dough Co. sent Jerry's Pizza 125 pounds of pizza dough and 75 pounds of pizza toppings, desserts, and soft drinks. Jerry's Pizza contacted Dazzling Dough Co. about the error in the contract and demanded an extra 75 pounds of pizza dough. Dazzling Dough Co. said there was no error, that Jerry's Pizza signed the contract so they agreed to the terms, and it was not sending the extra pizza dough.
After several attempts to resolve the dispute and a pressing need for dough, Jerry's Pizza terminated the contract and sent Dazzling Dough Co. a check for $15,000 for the 125 pounds of pizza dough, pizza toppings, desserts and soft drinks. Jerry's Pizza immediately purchased 75 pounds of pizza dough from another company for $12,000. Both parties are threatening to sue each other for breach of contract. They prefer to resolve the dispute out of court because the contract contains a clause that awards reimbursement of attorney's fees to the winning party.
The board of directors of Jerry's Pizza scheduled a meeting with you and other senior management at the company to discuss the dispute. You'll need to prepare a strategic plan overview (an abbreviated strategic plan, not a full plan) for the board that explains why there is a dispute, suggests various settlement proposals, and provides recommendations on how Jerry's Pizza can avoid this kind of dispute in the future.
Prepare a 525- to 875-word strategic plan overview to resolve the legal dispute for the board (use the bullet point headings provided below to format your overview) addressing the following:
Summary of Dispute
Identify the source of the dispute.
Identify each party's interpretation of the contract language.
Identify whether each party's interpretation is reasonable.
Identify any missing facts that would be helpful to know in order to resolve the dispute.
Proposed Revisions to Contract Language
Recommend specific revisions to the contract's language so that it is clear what Jerry's Pizza expected to buy and what Dazzling Dough Co. is required to deliver.
Ethical Considerations
Explain the ethical considerations for a company to enforce specific terms of a contract against another company if the other company is mistaken about what was agreed to. Discuss the factors that should be considered.
Recommendations
Two to three possible settlement options (e.g., pay for the disputed dough, reduce the amount of dough to be purchased, split the difference, refuse to pay, etc.)
Two to three methods of dispute resolution (e.g., negotiation, mediation, arbitration, litigation, etc.) that Jerry's Pizza can propose to Dazzling Dough Co.
Create a one-page visualization to represent the information you provide in this assignment.
Use the Table, SmartArt, or Chart visual representation options available in Microsoft® Word by clicking on the Insert tab located on the ribbon at the top of the window. Locate the Word Help function in the version of Microsoft® Word that is installed on your computer for assistance.
Explanation / Answer
Summary of Dispute:
There is a dispute between two parties who are involved in a food business. One party contracted the other party for the purchase of raw material for a certain value and for a certain amount. A legal bond was formed in the face of a contract. Upon delivery, the raw material was less than agreed upon and the payment was made less to the supplier. This created a lot of confusion upon various aspects of the contract and hence a dispute occurred.
Source of dispute:
Jerry Pizza ordered dough and other items related to its business in a certain quantity of 200 pounds. Dazzling dough, after signing an agreement sent only 125 pounds with additional items. Upon further requests from the buyer for the remaining dough, dazzling dough refused to send it. Jerry Pizza sent a check for an amount of 15,000$ which was half of 30,000$, the agreed price for 200 pounds of dough. Jerry pizza also purchased the remaining amount of dough from another party, which is out of the scope of this dispute. This particular transaction is identified as the source of dispute.
Interpretation of Contract:
Jerry's Pizza ordered pizza dough for 200 pounds and some additional items over the 200 pounds of dough. The dazzle dough interpreted into something else and sent only 125 pounds of dough with additional items. Still, it does not justify the interpretation that they made of the contract that made them believe that sending 75 pounds less of dough will complete the contract.
Missing facts:
The terms and conditions and the language of the contract should be studied in more depth to analyse if there is a scenario of fraud done by one party or if there is a genuine case of a mismatch. Before taking any action, the vocabulary and the measuring system used in the contract should be thoroughly analysed.
Revisions:
The contract should be taken to an independent lawyer to interpret and analyze. It should be noted that the contract was formed by the lawyer of dazzling dough and it should be in the legal language only. The third eye of an independent lawyer should give a clear idea of what was the order for and what was delivered to the buyer.
Ethical Considerations:
This cause a lot of ethical problems for the defaulter. If it is found out that the dazzle dough intentionally disregarded the terms then it will be a very bad publicity for them. they will lose their value as a supplier and their consumer base will reduce as most local pizza restaurants have them listed as the supplier.
Following factors should be taken into consideration to avoid this in future:
Settlement option:
Jerry pizza can offer following solutions to the Dazzling Dough as they both want to go for out of court settlement:
Dispute resolution:
If the Dazzling dough doesn't proceed ahead with the settlement then following methods can be taken into consideration:
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