A dispute has arisen between business entities with a lengthy relationship and each would suffer economically if the relationship were to suddenly end.Which of the following procedures should first be employed to attempt to maintain the relationship and quickly resolve the dispute?

Question

Quizplus · Accepted Answer

Negotiating a direct resolution, set out in a formalized settlement agreement, is the best first step in attempting to maintain the relationship and quickly resolve the dispute. This allows both parties to come to a mutually beneficial solution without the need for costly litigation, which can strain the relationship further. Consulting with bankers to determine whether the company can afford litigation or asking the company lawyer the cost of outsourcing the litigation are both secondary steps that can be taken if a resolution cannot be reached through negotiation. Refusing to compromise and looking for alternate business relationships should be a last resort.

A Dispute Has Arisen Between Business Entities with a Lengthy