Course Title: Business Law & Ethics

Section: 02 (summer 2022)

TERM PAPER

Submitted To
Sabbir Mahamud Chowdhury
Adjunct Faculty
Department of Master of Business Administration (MBA)

Submitted By
Prokrite Khondker
ID: 2022-1-95-119
In this case study represented The conflict between Lusai Forest Group Industries
and another reputed business group named BD Logistics. Lusai Forest Group
Industries took lease of a very large area of land from BD Logistics where the
amount of rent charged had not changed for years. After taking lease Lusai Fores
developed the land and installed several industry and establishment and also
developed the surrounding area as a commitment of social responsibility. the
landowner company approached the tenant company seeking to obtain a new
lease agreement with tripled amount of rent previously charged. Lusai Forest
refused to pay the increased rent. During primary assessment from Lusai Forest
end it became clear that it will cost more than 100 crore for the Lusai Forest to
relocate the business to another suitable place. If they were even able to find a
suitable location to relocate to they will have to spend more money to establish
same CSR standard to the new place. the landlord would likely face difficulty
trying to find an alternative tenant should the current one relocates. Moreover,
the land owner operates a supplying business with Lusai Forest with a yearly
turnover of 200 crore. BD logistics also have dormitory business in the area where
employees of Lusai Forest industrieslive for rent. If the Lusai Forest industry
relocates those dormitories will lose a significant amount of revenue.

We know that there are four dispute resolution processes such as Litigation,
Negotiation, Mediation, and Arbitration. If I advise Green Home Solutions in this
dispute, my first recommendation dispute resolution process is Mediation, and
my second recommendation dispute resolution process is Negotiation.

we know in Negotiation dispute resolution process, two or more parties attempt

to achieve together what they could not achieve unilaterally. In the given
situation of the case, it is clearly show that Lusai Forest Group Industries and BD
Logistics were not going for any ferther communication,both were benifited by
the lease and the lease agreement better than they could do anything by their
own and it is benificial for both to preserve a relationship. Lusai Forest Group
Industries and BD Logistics could negotiate for the increasing amount of rent.
So,if both party agree, Negotiation dispute resolution process could be possible
for resolving this dispute.

Mediation is a short dispute resolution process and as the mediator is selected by

two parties, the confidential information of the companies will be secured. In the
Mediation dispute resolution process, the mediator will discuss with two parties.
During the discussion, if two parties are not respectful of each other and not
interested in the opinion of the other, the mediator can control the situation. As
the mediator is neutral, impartial, or non-aligned, he can identify the actual
problem between two parties, and discover any innovative idea to solve the
dispute. The main advantage of the Mediation dispute resolution process is the
mediator doesn't take any decision but helps the parties to take the decision and
the parties can leave any time from the process. Lusai Forest Group Industries and
BD Logistics could comminicate and select a mediator for resolving this dispute.
As they are reputed companies in their field ,they both do not want to expose
their confidencial information and both were benifited by the each other
previously, the Mediation dispute resolution process can solve this dispute by
negotiation.

Arbitration dispute resolution process is a popular dispute resolution process for

resolving any business-related conflict which is not formal like the Litigation
dispute resolution process. Arbitration dispute resolution process is a consensual
but adjudicative process where the decision-maker is appointed by the parties.
But the law of arbitration dispute resolution process follows the law of litigation
dispute resolution process. Arbitration dispute resolution process can solve the
limitations of Litigation dispute resolution process. Arbitration dispute resolution
process is not a long process and is private and usually confidential. It was
mentioned in this case that both Lusai Forest Group Industries and BD Logistics
were banifited by eatch other and it is benificial for both to preserve the
relationship. In Arbitration dispute resolution process, the decisions are binding
and subject to limited judicial review. So, one party has a possibility of losing
which means the dispute does not put to an end. If they choose the Arbitration
dispute resolution process, the relationship between Lusai Forest Group
Industries and BD Logistics will be affected and one party will loose from the
benefit he get .i do not think the Arbitration dispute resolution process is good
solution for the given dispute, so i don’t recommend this process.

Litigation dispute resolution process is an adjudicative process of settling a

dispute in a court of law. It is a long process, sometimes it takes six or seven years
for resolving any dispute. The given dispute is business-related, and between two
reuted companies. Any company does not want to choose this type of dispute
resolution process which is a time consuming. On the other hand, as Litigation
dispute resolution process is a public process, there is a chance to leak any
confidential information of the company which can harm their reputation of those
companies.In extreme case,if both parties do not agree to negotiate and want to
go for litigation, they can choose litigation dispute resolution process.however, I
do not recommend the Litigation dispute resolution process for this dispute.

As an advisor, I am recommending Lusai Forest Group Industries to choose the

Mediation or negotiation dispute resolution process that save both companies
from loss and benefited both of the parties to maintain their good reputation.