The Legal System and Adr Analysis

Business conflicts are part of standard business operations and the business needs to focus on utilizing the most efficient way to resolve the conflict. The failure to complete contractual obligation is categorized as breach of contract which can be resolved in the court system. In order to avoid extensive expense associated with the traditional court case resolution, the most efficient ways for business to handle disputes is to use the Alternative Dispute Resolution (ADR) method.
Case Scenario
The following scenario demonstrates the breach of contract between two parties. Mike and Jessica Smith are newlyweds who bought their first home together, the couple agreed to find a house in need of remodeling so they can make it fit their needs and wants. Once the house was purchased they agreed on hiring a local contractor to do the work. Since the couple lived in the apartment, they needed the work to be done in a timely matter and within the budget. Both parties signed the contract agreeing on the cost of the project and the time it will take for competition. The contractor indicated that the work will last for 5 weeks; however the contractors’ crew started the work 3 weeks late and after 8 weeks later the work is only ¼ finished in addition to poor quality of work. Mike tried to contact the contractor but failed to receive any answer or explanation.
While most businesses would attempt to resolve the conflict in court, due to the lack of resources this case should find the solution through the alternative method. Based on the cost and time involvement into the conflict resolution both parties would benefit by settling out of court. Both parties would suffer financial loss; the contractor would earn a negative reputation that would put the future of the business in crisis.   The most efficient way for business to resolve business disagreements includes Alternative Dispute Resolution with the use of negotiation, arbitration and mediation. The most efficient method of...