Effective Dispute Resolution in Business: Court Processes vs. ADR

Desklib provides past papers and solved assignments for students. This presentation explores business dispute resolution methods.

Business Law
Task 2

Introduction
• In the presentation,
appropriate legal solutions
for three business disputes
have been provided.
• The appropriate methods of
dispute resolution are
discussed and
recommendations have been
made accordingly.
• Lastly, the effectiveness of
recommendations given is
analysed.

Methods of Dispute
Resolution (P6)
The disputes can be resolved by two methods. These are:
• Traditional Court process
• Alternate Dispute Resolution (ADR) Method
Under ADR, there are four methods which can be used to
resolve the dispute. These are:
• Arbitration
• Mediation
• Conciliation
• Negotiation

Case 1

Issue
• Gordon wants to know his rights with respect to his
wages in year 2017.
• He also wants to know if he has any rights to claim
for wages of 2016 and 2015.
Rule
• The rules of contract and employment law are
applicable.
• Changes can be incorporated in employment
contract with agreement of both employer and
employee
• If any changes are made, they are enforceable.

Application
• The contract was amended with approval of both Gordon and
his manager, Fred.
• Such contract is enforceable according to the amended terms.
Conclusion
• Gordon cannot claim his salary in 2017 to be paid according to
the previous original contract as he agreed to amend the
contract.
• He further cannot claim for payment of salary of 2015 and
2016.
• Dispute can be resolved by Conciliation.

Case 2

Issue
• Janet was charged with the whole package of internet
even when his internet was installed after three weeks
of application.
• She needs advice on the package payment.
Rule
• Based on the contract law principles, the consideration
shall be paid only when the terms of contract are
fulfilled in accordance with the contract.
• In case of violation of terms, the contract shall be
breached and the injured party shall not be bound to
pay compensation.

Application
• The internet services were provided to Janet after
three weeks.
• The company breached the contract terms.
• Janet is not bound to pay the company for the
period when the internet connection was not
installed.
Conclusion
• Janet can decline to pay for the three weeks when
the internet was not installed.
• On case of any dispute, it can be resolved by
arbitration process.

Case 3

Issue
• The company Blackhorse is unable to pay its debts to creditors.
• The creditors have made a petition for winding up of company.
• The company is seeking legal help to protect the company from being
wound up.
Rule
• In UK, Insolvency Act, 1986 provides for the winding up of companies.
• Based on the provisions of the Act, the company can be wound up by
the court or voluntarily by members or creditors.
• The companies can avoid winding up petitioned by creditor by
entering into an agreement with creditor to pay debts on future date.

Application
• Based on the applicable laws, the company can be protected
from winding up under two circumstances:
 Entering into an agreement with creditors to pay on a later
date
 Paying the creditors in full.
Conclusion
• The company has no money to pay to creditors.
• Therefore, it can be protected from winding up by entering into
an agreement with the creditors.
• The dispute can be resolved by court process or arbitration.