Beit a local or international doing business has always had it way of finddisputes and misunderstanding between both the parties that do business.
Whenit comes disputes it has its own complications and difficulties that canstimulate. This part of the report specifies the principal concepts of disputeand what method is going to be used for the disputes of our business. Controversiesin international trade involves, breach of contract, collection of payment due,disputes with agents and dealers.
There generally three known methods or typeof resolutions.· Mediation· Arbitration· LitigationFor our businesswe have agreed upon Arbitration as our method to resolve disputes if so any.Arbitration: Arbitrationis usually a second option after mediation when a dispute cannot be settled bynegotiation between the parties. When disputing parties have an outside person(“Arbitrator”) to dispute resolution this type of resolution is known asArbitration. An Arbitrator generally listens to both the side of parties andmakes legit decision which is agreed by both the parties to be bound byarbitrator’s decision. It is kind of similar to mediation, but with theexception that the arbitrator’s ruling is final and binds the parties. An Arbitratoris collectively selected by both the parties and mutually agree that the resultbinds which is stated in the contract.
Weselected arbitration because,· Arbitration is more sophisticated and privateway of resolution. The brand name of the both the companies are protected.· The decision is final and binding.· The relationship of the both the parties are notharmed.· Selection of arbitrator can be chosen from awide range of expertise in different kind of area.· The rules and arbitrator are independent fromboth the parties, thus favoritism is out.
· It is fast and cheap.Arbitration clause: Ourcontract contains arbitration clause which contains all the part rules andsubmission related to any disputes. We have kept our submission as wide aspossible, the submission determines whether a particular dispute is one thatfalls within the agreement to arbitrate. OurArbitration clause consist or it is a private arbitration, we have agreed uponto follow institutional type of arbitration. In which we choose the rules andregulation of a particular organization equipped to conduct arbitration. AmericanArbitration Association (AAA) is the organization that we have agreed toapproach to resolve any disputes. Along with it we have decided to bind byAmerican law and its regulation.