Wk 1 – Apply: Litigation Cost-Benefit Analysis and EnforceabilitySources Ch. three and Ch. four of Authorized Setting of Enterprise: On-line Commerce, Enterprise Ethics, and International Points
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Photo voltaic Co. Inc., a photo voltaic panel manufacturing and set up firm, has not too long ago encountered a collection of scandals and dangerous publicity regarding faulty photo voltaic panels, poor workmanship, and worker allegations of harassment by executives throughout the firm. One declare resulted in a two-year trial which Photo voltaic Co. misplaced; all different claims have been settled out of courtroom.
Photo voltaic Co. enters right into a contract with XYZ Media to arrange a 6-month nationwide promoting and public relations marketing campaign to assist restore its tarnished status at a value of $600,000. XYZ Media launches the marketing campaign, and it's profitable for the primary two months till XYZ's pc servers are hacked and all shopper info is misplaced as a result of XYZ did not have sufficient backup programs in place. As well as, social media account info and passwords have been compromised, leading to derogatory and inappropriate posts being made on all of XYZ's social media accounts for a number of hours. As a result of XYZ was managing Photo voltaic Co.'s social media presence on the time, Photo voltaic Co.'s social media accounts have been additionally taken over by the hackers for a quick time and stuffed with damaging posts.
XYZ points a public apology; nonetheless, Photo voltaic Co. needs to terminate the contract with XYZ and obtain a refund of the $200,000 it paid for the primary two months of the marketing campaign as a result of damages brought on by the pc hack. XYZ refuses to cancel the contract or challenge a refund, insisting that it might probably efficiently proceed the marketing campaign and re-create all the materials that was misplaced. Photo voltaic Co. refuses to pay any additional quantities due beneath the contract and has already begun looking for a brand new media relations agency to re-launch the marketing campaign.
Write a 525- to 700-word advice to Photo voltaic Co.'s CEO advising whether or not Photo voltaic Co. ought to: file a lawsuit and proceed to trial
attempt to attain a settlement with XYZ Media, or
use a way of other dispute decision (ADR) Your evaluation ought to particularly focus on every of the 9 elements supplied within the "Modern Setting Value-Profit Evaluation of a Lawsuit" function present in Ch. four, "Judicial, Various, and E-Dispute Decision." Present a transparent clarification and reasoning on your advice based mostly on the information of the state of affairs.
Would your advice be completely different should you have been advising XYZ Media's CEO? If that's the case, how?
Photo voltaic Co. intends to make use of arbitration agreements with all purchasers, subcontractors and workers sooner or later.
Write a 350- to 525-word memo to Photo voltaic Co.'s CEO explaining the arbitration process and the enforceability of arbitration provisions beneath the Federal Arbitration Act.
Embrace a advice as as to if arbitration agreements must be used sooner or later to scale back Photo voltaic Co.'s authorized danger and why.
Submit your task.