Rutgers Newark University Colossal Management Discussion

Colossal management also needs to know whether arbitration is a good idea for a disputeresolution provision for both domestic and international contracts and why.
Arbitration would be a good option for an alternative dispute resolution involving both domestic
and international contract. Arbitration provides several benefits as opposed to other alternative
dispute resolutions such as mediation. Both alternatives provide a platform for the dispute
between two companies to be heard, but one of the major benefits to the arbitration process is
that a decision will be made. A mediation offers options and choices for the companies to
continue to discuss until or if a resolution is reached. If the company’s place their case in the
hands of a arbitrator, they are empowering them with the ultimate decision in the process. This
process at least ensures a decision is made and avoids litigation which could warrant substantial
costs and hurdles—especially in international court—in getting the case presided over.
Arbitration is a cost-effective process to avoid the cost. The arbitration can also benefit the
overall relationship between the two companies. By avoiding litigation and potential costs, the
decision can be made quickly and swiftly and ultimately keep the companies relationship intact
for future business. Most likely the companies will agree to choose an arbitrator with extensive
expertise who understands the process and can also ensure privacy in the matter which could
serve as a great benefit to any company that wants to protect both the prior relationship with the
other party and their overall standing in the market in which they operate.
References
Alternative Dispute Resolutions. (2020). University of Maryland University College. Retrieved
from https://leocontent.umuc.edu/content/umuc/tgs/mba/mba630/2201/learningresourcelist1/alternative-disputeresolution.html?ou=441085