The Purpose Of This Assignment Is To Analyze And Select An A ✓ Solved

The Purpose Of This Assignment Is To Analyze And Select An Appropriate

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):

Summary of Dispute

The core of the dispute lies in the interpretation of the contractual agreement between Dazzling Dough Co. and Jerry’s Pizza. The disagreement stems from ambiguous or unclear contract language concerning the quantity of pizza dough to be delivered. Dazzling Dough Co. believed the contract, prepared by legal counsel, explicitly specified a purchase of 200 pounds of pizza dough, along with additional items, at a total price of $30,000. Conversely, Jerry’s Pizza asserts that the actual delivery of only 125 pounds of dough—despite the contract’s reference to 200 pounds—is insufficient and constitutes a breach of agreement.

The source of confusion appears to be the contract language, which combined multiple items into a single agreement, potentially leading to misinterpretation about the primary commodity—pizza dough—and its specified amount. Each party’s interpretation appears reasonable given their perspective. Dazzling Dough Co. reasonably believed that the contract explicitly committed to supplying 200 pounds of dough, as stated in the document. On the other hand, Jerry’s Pizza reasonably interpreted the contractual terms and subsequent communication, expecting the full 200 pounds delivery, especially since the contract was signed and indicated the purchase of 200 pounds of dough.

Key missing facts that would assist in resolving the dispute include the detailed contractual wording regarding quantities, any prior correspondence clarifying the terms, and the standard practices or previous negotiations with Dazzling Dough Co. These details could clarify whether the ambiguity was communicated or understood differently by each party.

Proposed Revisions to Contract Language

To prevent future misunderstandings, the contract should include clearer, more precise language. For example, specifying the exact quantity of each item separately: “Dazzling Dough Co. shall deliver 200 pounds of pizza dough, along with specified amounts of pizza toppings, desserts, and soft drinks at the agreed price of $30,000.” Additionally, including detailed delivery terms—such as date, method, and acceptance criteria—can clarify each party’s obligations. Defining terms explicitly at the outset minimizes ambiguity and reduces the likelihood of disputes arising from interpretations of vague language.

Ethical Considerations

Enforcing specific contractual terms against another company when there is a mistaken understanding involves significant ethical considerations. Ethically, a company should weigh principles of fairness, transparency, and good faith. If one party is found to have misunderstood as a result of ambiguous language or lack of clarity, enforcing strict terms could be viewed as unjust or opportunistic. Fairness entails considering the reasons behind the misunderstanding, whether the mistake was honest or negligent, and whether enforced terms reflect the true agreement. Upholding ethical standards involves transparent communication, reasonable amendments when discrepancies arise, and striving to resolve disputes equitably, fostering trust and long-term relationships rather than solely prioritizing contractual technicalities.

The factors to consider include the clarity of original contract language, the conduct of each party during negotiations or after the discrepancy emerged, previous business relationships, and any documented communications indicating the intent of the parties. The ethical approach would aim for a resolution that recognizes mutual understanding and promotes fairness rather than punitive enforcement.

Recommendations

Settlement Options

• Parties agree that Dazzling Dough Co. pays for the undisputed 125 pounds of dough, and Jerry’s Pizza covers the cost of the additional 75 pounds from Dazzling Dough Co., potentially at a negotiated rate.
• Split the difference: Both parties share the financial burden, with Jerry’s Pizza paying a fair market value for the 75 pounds of dough not delivered.
• Refuse to pay further, arguing the contract was misinterpreted, and settle the dispute through legal channels, possibly mediated.

Dispute Resolution Methods

• Negotiation: Direct communication to amicably reach a settlement without third-party involvement.
• Mediation: Engage a neutral third-party mediator to facilitate a mutually agreeable resolution.
• Arbitration: Submit the dispute to an arbitration panel for a binding decision, providing a less costly and faster resolution than litigation.

Implementing these strategies can help Jerry’s Pizza resolve the dispute efficiently while preserving business relationships and minimizing legal costs.

Visualization

A visual chart illustrating the dispute resolution options, contractual revisions, and ethical considerations can be created in Microsoft Word using Insert > SmartArt, representing these elements clearly for presentation to the board.

References

• Farnsworth, E. A. (2015). Contracts. Aspen Publishers.
• Beatty, J. F., & Samuelson, S. (2019). Business Law and the Regulation of Business. Cengage Learning.
• McConnell, C. R., & Brue, S. L. (2020). Contemporary Labor Economics. McGraw-Hill Education.
• Kelly, R. S. (2018). Ethical considerations in business contract enforcement. Journal of Business Ethics, 152(2), 349–362.
• U.S. Small Business Administration. (2022). Managing business disputes. https://www.sba.gov
• Gooch, T. G. (2017). Alternative dispute resolution in business. Harvard Business Review, 95(3), 52–59.
• American Arbitration Association. (2021). Dispute resolution processes. https://www.adr.org
• Moore, M. K. (2016). Ethical issues in contract law. Business Ethics Quarterly, 26(4), 637–654.
• Whitesell, J. (2014). Negotiation skills for business professionals. International Journal of Business Communication, 51(3), 239–259.
• American Bar Association. (2020). Principles of ethics for dispute resolution practitioners. https://www.americanbar.org