Question

ABCar Co is a new type of car company. They hire various subcontractors namely DesignCar Ltd., who designs the cars, ManuCar Inc., who manufactures the vehicles, and TestCar Co., who tests the cars before they are put into full production. Recently, ABCar Co has received many complaints about the failure of the braking system. There is a dispute between ABCar Co, DesignCar Ltd., ManuCar Inc., and TestCar Co. as to who is responsible for the problem and who must bear the cost to fix it. Referring to the dispute resolution mechanisms you explained in question 3 (a) (you don't need to reproduce the information), which dispute resolution mechanism would you select to resolve this dispute and why would you select it? Why would you reject the other ones?

Answer 1

In the given scenario, the dispute resolution mechanism I would select to resolve this dispute is mediation because it allows for open communication, the involvement of a neutral mediator, and the opportunity for the parties to collaborate in finding a solution.

Dispute resolution mechanisms

In the given scenario, where ABCar Co is facing a dispute regarding the failure of the braking system with its subcontractors DesignCar Ltd., ManuCar Inc., and TestCar Co., Given the situation, the best way to solve the disagreement would be to have a mediator help.

Mediation helps people talk openly, with a neutral person to help, and gives them a chance to work together to find a solution. It helps people work together to solve problems and keep their business relationships strong.

Negotiation is not the best option because it is complicated and people don't agree. Arbitration and litigation might be better, but they are more formal and expensive and could make relationships worse. Mediation is a good choice because it is both relaxed and organized.