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Red Ltd and Blue Ltd have had a disagreement over a high value project they have been partnering on. They have been unable to resolve the issues inhouse and Red Ltd has suggested Mediation as an option. Is this a good option?
- A . Yes- mediation involves a neutral third party and gets both parties to attempt to reach a compromise
B. Yes- mediation means the buyer and supplier agree to accept a third party’s decision which will solve the disagreement issues
C. No- it would be better to solve the disagreement in-house
D. No- mediation could have a negative impact on the companies’ reputation
Suggested Answer: A
Explanation:
The correct answer is ‘Yes- mediation involves a neutral third party and gets both parties to attempt to reach a compromise’. Be careful not to confuse mediation with arbitration C arbitration is when the buyer and supplier agree to accept a third party’s decision which will solve the disagreement issues. See p.112 for more information on solving disputes
Explanation:
The correct answer is ‘Yes- mediation involves a neutral third party and gets both parties to attempt to reach a compromise’. Be careful not to confuse mediation with arbitration C arbitration is when the buyer and supplier agree to accept a third party’s decision which will solve the disagreement issues. See p.112 for more information on solving disputes
Posted : 26/10/2022 12:51 pm