Question

W.T. Inc, is a manufacturer organized in Country K. It is revamping it's management systems and is converting to a cloud based system that is being developed by C.B. corp, a company that is organized in country L. C.B.'s server farms are located in Country M. W.T. seeks to terminate the agreement asserting that the system's design is defective and wants a full refund. C.B. refuses to return the payment. It counters that the defects are minor and easily corrected at the server level. CB also offers to mitigate any economic damages that WT may incur because of the slight delay. It WT litigates, consider issues of jurisdiction and which country's laws would likely govern. Assuming that the agreement provides for Arbitration or that the parties agree to arbitration, discuss the advantages of ADR including the effect on jurisdictional issues and questions of law.

This is a written assignment. It is general in its context. There is no right or wrong response here. Your analysis in support of your opinion is what I am interested in. Feel free to pull from personal knowledge or use outside sources, but be sure to provide proper citation. Paper should be double spaced, at least 2 pages but please do not exceed 5 pages.

Answer 1

So this is all about a void of contract between two parties wherein one party W.T. Inc (manufacturer) order other party C.B. for a development helps in converting to a cloud based system. Also both parties are of different origins and hence are bounded with different rules and regulations. The first party i.e. W.T. seeks to terminate the agreement asserting that the system's design is defective and wants a full refund.

Practically this is the matter of mutual consent wherein sentiments of any of the party shouldn’t get hurt. Also they may negotiate the deal even for future but with the help of mutual consent. So here it is the question whether each country should favor their company and give rise to conflicts and this in turn will demolish the relationship between the countries. Moreover there are thousands of companies registered in different countries and they also get involved in the contracts that doesn’t means that country will settle dispute between them all the times. So this type of situation there are regulatory bodies across countries and for settling international disputes of such a kind. Here it is found that the defects are minor and easily corrected at the server level even . CB also offers to mitigate any economic damages that WT may incur because of the slight delay. So considering issues of jurisdiction and which country's laws would likely to govern has been answerd.

After both the parties agree for the outside settlement there is major role of ADRs. Advantages of Alternative Dispute Resolution (ADR) are flexible, cost-efficient, time-effective, and give the parties more control over the process and the results. The purpose is to provide an internal process to increase faculty and staff options in addressing their health science center-related disputes and to further the voluntary resolution of problems at the earliest opportunity, gives parties in dispute the opportunity to work through disputed issues with the help of a neutral third party. It is generally faster and less expensive than going to court. Advantages :

· it is usually faster and less costly

· people have a chance to tell their story as they see it

· it is more flexible and responsive to the individual needs of the people involved

· it is more informal

· the parties' involvement in the process creates greater commitment to the result so that compliance is more likely

· the confidential nature of the process

· Alternative Dispute Resolution is more likely to preserve goodwill or at least not escalate the conflict, which is especially important in situations where there is a continuing relationship

Typical ADR processes include mediation, arbitration, neutral evaluation, and collaborative law

Arbitration can be “binding” or “non-binding.” Binding arbitration means the parties have waived their right to a trial, agree to accept the arbitrator’s decision as final and, usually, there is no right of appeal of the decision. If there is a binding arbitration clause in a contract, the matter must proceed to arbitration and there is no trial.

Non-binding arbitration means the parties can request a trial if they don’t accept the arbitrator’s decision. Some courts will impose costs and fines if the court decision is not more favorable than that awarded in arbitration.

Except for some interim measures, there is very little scope for judicial intervention in the arbitration process. The arbitration tribunal has jurisdiction over its own jurisdiction. Thus, if a party wants to challenge the jurisdiction of the arbitration tribunal, it can do so only before the tribunal itself. If the tribunal rejects the request, there is little the party can do except to approach a court after the tribunal makes an award.