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Precision Inc Case Paper

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In response to your request, I have analyzed potential legal actions we, Precision Inc., can take against Supplier, whom failed to deliver the right medical devices on time. I am pleased to share the following analysis, which summarizes considerations for each legal action.

First legal action that Precision Inc. can take is to file a lawsuit alleging that the Supplier never delivered the 5,000 medical devices, which rendered our company to issue a loss of $4 million. If we decide to file a lawsuit against Supplier, we will resolve the dispute in a formal way at a courthouse. In litigation, there will be a discovery, depositions, and interrogations taking a place, which can be beneficial for our company to prove the promises and losses that …show more content…
more in the resolution of disputer settlement than litigation. These are mediation and arbitration. If Precision Inc. and the supplier decides to mediate to settle the dispute, both parties will need to agree on the mediator who is neutral and impartial to assist both parties and help them to find a mutually satisfactory resolution. Based on the fact that, our company, Precision Inc., has been working with the supplier for 7 years and there are no alternative suppliers to order high quality devices, it may be beneficial for us to get together with the Supplier and discuss the importance of on-time delivery of right devices to our business. Because the Supplier indicated that our employees made a mistake and responsible for the order confusion, it would be win-win if both sides hear from each of their perspectives and mutually agree under …show more content…
Unlike litigation, our company will have the opportunity to go through a more flexible and informal ways of resolving the dispute with leading to a joint gains and preserve our relationship with them, since we will be working together in the future. Under mediation method, our company can resolve the dispute in a less hostile way without needing for a discovery or depositions, which will prevent our company and Supplier to become antagonistic to one another. As opposed to litigation, mediation is a private and confidential procedure that essential to our business. Our other suppliers and customers may become nervous if problems that could have kept confidential are reported in the press. Mediation is beneficial to preserve confidentiality and privacy, which are extremely important for our creditors, investors and stakeholder of corporations. Also, mediation is not binding. Our corporation, Precision Inc., has a right to walk out if the settlement could not be reached with the Supplier and we can take more formal action with pursuing arbitration or

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