The Purpose Of This Assignment Is To Analyze And Sele 147259

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):

Paper For Above instruction

Summary of Dispute

The core of the dispute between Jerry's Pizza and Dazzling Dough Co. centers on the alleged mismatch between the contractual terms and the actual delivery. Jerry's Pizza contends that the contract's wording clearly specified an order of 200 pounds of pizza dough, which they expected to receive, whereas Dazzling Dough Co. delivered only 125 pounds, claiming there was no error and that the contractual terms were accepted as-is. The disagreement has escalated to threats of litigation, with both parties claiming breach of contract and disputing the adequacy of the delivery and payment.

Identify the source of the dispute

The dispute originates primarily from ambiguous contractual language and differing interpretations of the order quantity. While the written contract explicitly states a purchase of 200 pounds of pizza dough, the delivery of only 125 pounds has led to confusion. Additionally, misunderstandings about the scope of the order—particularly which items were included in the contractual purchase—contribute to the disagreement. The absence of clarifying provisions or detailed specifications in the contract regarding delivery quantities creates room for conflicting interpretations.

Identify each party's interpretation of the contract language

Jerry's Pizza interprets the contract as explicitly requiring the delivery of 200 pounds of pizza dough, as mentioned in the written agreement. Conversely, Dazzling Dough Co. believes that their delivery of 125 pounds combined with other items constitutes fulfillment of the original order or that the signed contract bindingly confirms their understanding that only 125 pounds were to be delivered or paid for, possibly based on the quote or internal communication. Dazzling Dough Co. also asserts that the signed contract contains an acceptance of the terms, including the scope of delivery, whether or not discrepancies exist.

Identify whether each party's interpretation is reasonable

Jerry's interpretation aligns with the explicit language of the contract, making it reasonable to assert that the delivery should match the agreed-upon quantity. Dazzling Dough Co.'s perspective may be considered reasonable if they believe that internal communications, prior negotiations, or the nature of the delivery fulfill the contractual obligations. However, without clear wording or amendments, their claim that the delivery of only 125 pounds suffices is less persuasive, especially since the contract explicitly states 200 pounds. Both interpretations could be seen as reasonable within their contexts, but the ambiguity in contractual language favors Jerry's more straightforward interpretation.

Identify any missing facts that would be helpful to know in order to resolve the dispute

Additional details that would clarify the dispute include: the correspondence and negotiations prior to signing the contract, any oral agreements or understandings regarding quantities, the internal policies of Dazzling Dough Co. concerning typical order sizes, and the specific language used in the initial quotation or negotiations. It would also be helpful to know whether Dazzling Dough Co. sent a delivery confirmation or invoice that explicitly referenced the 200-pound order, and if there were any witnesses or communication records supporting either party's interpretation of the scope of the order.

Proposed Revisions to Contract Language

To prevent similar disputes, the contract should include precise, unambiguous language detailing order quantities, item specifications, and delivery expectations. For example, explicitly stating: "Dazzling Dough Co. shall deliver exactly 200 pounds of pizza dough, along with agreed-upon quantities of toppings, desserts, and drinks. Any deviation or partial delivery must be mutually approved in writing prior to shipment." Additionally, including a section that clarifies how discrepancies are to be handled, with procedures for amendments and confirmations, will minimize misunderstandings and provide legal clarity.

Ethical Considerations

Enforcing contractual terms ethically requires balancing the obligation to uphold agreements with fairness and honesty. If a company is mistaken about the scope of an agreement, it raises ethical issues related to good faith, transparency, and potential undue advantage. Companies should consider whether enforcing strict terms aligns with principles of fairness, especially if the other party was misled or if ambiguity existed in the contractual language. Ethical enforcement involves clearly communicating expectations, promptly resolving misunderstandings, and being willing to renegotiate or amend unclear provisions. Failing to do so risks damaging business relationships and reputation.

Recommendations

Possible settlement options include:

  • Responsible payment of the disputed amount, such as paying for the 125 pounds delivered, and negotiating a fair adjustment for the additional 75 pounds.
  • Reducing the total purchase amount to reflect the delivered goods plus an agreed-upon compensation, effectively splitting the difference between parties.
  • Refusing to pay for the undelivered or disputed portion and initiating a mediated resolution to establish clear future expectations.

Methods of dispute resolution that Jerry's Pizza can propose include:

  • Negotiation, to reach an amicable settlement without third-party involvement, emphasizing maintaining business relationships.
  • Mediation, involving a neutral third-party facilitator to help both parties find a mutually agreeable solution.
  • Arbitration, providing a binding decision from an impartial arbitrator, which offers a less formal alternative to court proceedings and can be more efficient.

Implementing these strategies can help Jerry's Pizza resolve current conflicts efficiently and create more robust contracts moving forward.

References

  • Farnsworth, E. A. (2014). Contracts. Aspen Publishers.
  • Schwartz, A. L. (2011). Business Dispute Resolution. Wolters Kluwer Law & Business.
  • U.C.C. (Uniform Commercial Code). (2020). Articles 2 - Sales. National Conference of Commissioners on Uniform State Laws.
  • Moore, P. (2008). Ethical considerations in business contract enforcement. Journal of Business Ethics, 79(3), 243-255.
  • Menkel-Meadow, C., & Lovett, M. J. (2010). Mediation and Settlement Negotiation. Aspen Publishing.
  • American Bar Association. (2022). Alternative Dispute Resolution. ABA Publishing.
  • Walton, R. E. (2014). Business Negotiation and Dispute Resolution. Routledge.
  • Katz, J. (2015). Ethical obligations in contractual relationships. Harvard Business Review, 93(2), 84-91.
  • Roberts, M. (2017). Drafting clear contractual language: Best practices. Legal Studies Journal, 35(4), 629-647.
  • Baker, S., & Lande, A. (2019). Strategies for dispute resolution and contract management. International Journal of Law and Management, 61(3), 349-362.