Minor assessment Essay Example | Topics and Well Written Essays - 1250 words

Minor assessment - Essay Example firm, on the other hand, is facing defective products from claims by the Spanish firm. The contract that the two companies signed contains an arbitration clause and alternative dispute resolution provision with choice of law features. This contract defines several key issues to be observed by the two companies in their dealings as partners in the business: their conduct, litigation and dispute resolution. These include the following factors: Castilla S.L. and New Jersey Inc. will work on an exclusive basis to purchase and resell chattels in the region defined by the two entities. Both companies accept the appointment on the terms and conditions set forth herein that obligates the companies to fulfill the requirements of this agreement. The term â€Å"Product† will mean the chattels that will be sold by the two companies. The two companies reserve the right to delete discontinued products upon thirty days’ written notice to all stakeholders. 1) The companies can agree to solve the problems out of court as partners because this option is available in the contract signed by both parties. They can come together to analyze the causes of the delivery delays by the Spanish distributor and the defective product claims by the Spanish firm. This option will be very important because the companies have not worked together for long and these problems could be because of minor issues that can be solved and ignored. 2) The second option would be for the firms to implement fully the clause from the contract that requires that any of the partners should pay for the risks if it is it found out that the firm deliberately caused the risk. This can be done by conducting an investigation to the problems and the participation of the firms. 3) The third option would be for the companies to allow the court to help them solve the dispute because this option is also provided under the contract. Both parties have claims against the other. Therefore, going to court could be the