On January 10^th, JON, Inc. enters into a contract in which Jon, Inc. is to deliver 1000 special order widgets to the JPK Construction Company for use in a unique project. Delivery is scheduled for November 23^rd. On February 14^th, JON, Inc. hears through the grapevine that JPK has entered into a contract with another company to buy the widgets at a lower price. JON, Inc. calls JPK on March 15^th and is reassured that the contract will be honored. On August 8^th, JPK takes delivery of the widgets from the other company and begins using them in the unique project they are working on. On November 23^rd, JON, Inc's truck arrives at JPK's loading dock with the 1000 widgets and JPK refuses to take delivery.
If JON, Inc. wanted damages for the breach of contract but wishes to pursue recovery through ADR rather than litigation but wanted to keep litigation options open, which form of ADR should JON, Inc. avoid?

Question

Quizplus · Accepted Answer

Arbitration involves a neutral third party who makes a binding decision on the dispute. By choosing arbitration, JON, Inc. would be giving up their right to pursue litigation and have a judge or jury make a decision. Therefore, if JON, Inc. wants to keep litigation options open, they should avoid choosing arbitration as their form of ADR. Negotiation, mediation, mini-trials, and fact-finding all allow parties to explore solutions and potentially reach a settlement without giving up their right to pursue litigation if necessary.

On January 10th, JON, Inc

On January 10^th, JON, Inc