Running head: CHAPTER 16 DISCUSION QUESTIONS 2 AND 11 1

Chapter 16 Discussion Questions 2 and 11

Author

Institution
CHAPTER 16 DISCUSION QUESTIONS 2 AND 11 2

Chapter 16 Discussion Questions 2 and 11

Question 2

At times, disputes occur between contracting parties and it is advisable to find an

amicable solution within the shortest time possible. Burt et al. (2010) identified four primary

strategies for dispute resolution, namely, negotiation, mediation, arbitration and in court

settlements. The scholars added that negotiation, where possible, is the best strategy as it

avoids further confrontations that may be costly, time-consuming and at times damage the

reputation of parties involved. Where negations fail, the next best alternative is mediation

using a third party. Burt et al. (2010) cited that the mediator should be a trusted party who

listens, sympathizes and persuades the parties involved and, if possible, proposes possible

solutions. Alternatively, the dispute may be solved through litigation using either an arbitrator

or court. In an arbitration, the solution to the dispute is left in the hands of the arbitrator who

reviews the available evidence and proposes a solution using available facts and law (Burt et

al, 2010). The last alternative for dispute resolution is presenting the case in a court of law to

be resolved before a judge or jury.

Question 11

Historically, each state developed its own statues and laws to govern issues

concerning commerce. Consequently, the laws varied widely across states which made it

challenging for business conducting interstate commerce. As Burt et al. (2010) observed, the

need to create uniformity of laws across states led to the development of the Uniform

Commercial Code (UCC) which was a uniform law governing all aspects of commercial

transactions. However, the scholars noted that UCC was developed before the widespread use

of e-commerce and did not cover cyber transactions. Therefore, there was needed to re-draft

the UCC through the Uninform Computer Information Transactions Act (UCITA) to cover

licences and computer software. Burt et al. (2010) added that e-commerce also brought a new
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challenge concerning electronic records and signatures. The scholars added that the Uniform

Electronic Transactions Act (UETA) was developed to recognize electronic signatures as

legally binding.
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Reference

Burt, D. N., Petcavage, S. D., & Pinkerton, R. L. (2013). Supply management (8th ed.).

Boston: McGraw-Hill.