EAST WEST UNIVERSITY

Term Paper
Words: 1, 050

Name: Md. Shah Alam

ID: 2022-1-91-007

Business Law and Ethics

Sabbir Mahamud Chowdhury

Paper Submission Date

September 3, 2022
Option -1 (Mediation)

As an advisor of Blue Ocean Apparels, I will choose Mediation. Because mediation is a process
in which both the parties use to discuss their problems and disputes to the third party who is a
trained impartial third person who assists them in reaching a settlement. Mediation is an informal
meeting among the two parties which is a scheduled settlement conference.

Also, to solve the conflict between Blue Ocean Apparel & X-factor. X-factor is a good buyer.
They are doing business with Blue Ocean Apparel from last 10 years & Blue Ocean Apparel has
further business opportunity in future. That’s why I have choose mediation over the process of
other forms of litigation.

Mediation has some good process to solve conflict. Like timely resolution, confidentiality,
affordability, private sessions, participation in the resolution of the disputes and many other
cases of preservation of the interrelationship between the parties. Another is that the cost of
mediation is much lower than the cost of the process of the litigation. The mediator’s hourly rate
is quite lower than that of the lawyer.

In this case I have seen that X-factor has given ordered to Blue ocean Apparel to produce 10 lac
pieces of Shirts and 10 lac pieces of denim jacket. Accordingly, Blue ocean Apparel started to
produce products to maintenance safety and environmental protection. Also, X-factors have
visited the factory check and submit the report that everything is ok.

But after receiving first lot, X-factor cancelled remain lot. Also, didn’t pay the price of delivery
part. Now X-factor said that this product quality is not ok as per their demand. Blue ocean
Apparel want to revise their product price to keep the relation with X-factor. Blue ocean Apparel
already invested a handsome amount of money to produce the product.

Through mediation we can resolve the conflict. So that both of parties can benefit & they can do
business in future smoothly.

A mediator is said to be a person with common sense, persistence and patience. He has many
techniques of negotiations, skills of human dynamics, effective listening powers restatement and
articulation. The mediator is said to be a facilitator who has the power to render the resolution to
the conflicts. In many kinds of jurisdictions, the mediator is said to be an attorney, but he is
bound to not give legal advice while he is in the role. However, the mediator’s subject area of
expertise will be beneficial by the parties in framing and wording the mediation agreement or in
the circumstances where the parties are open to the neutral case evaluation.

A mediator has some good quality. Like:

 Trust
 Neutrality
 Confidentiality
 Listen patiently
 Punctuality
 Act within corners of law
 Knowledgeable
 Optimistic

Without those quality of mediator, mediation will not work to solve this conflict.

How Mediation work: The meeting is held at a mutually agreeable place by Blue Ocean Apparel
& X-factor. It can be the place at which both the parties feel comfortable or at the place of the
mediator. There are stages as follows:

1. Introduction – It means the introduction of the problem which both the parties are facing.
The mediator will give an opening statement about the problem of the parties. It will then
provide for the introduction of the mediator, his experience or other qualifications. Then
they will discuss the problem they both are facing and will talk for the mutual solution at
which both the parties will be comfortable.
2. Problem Determination – After the introduction phase is over, the mediator will
determine the basic problem of the whole discussion.
3. Generation of options and alternatives – It is the phase in which both the parties and the
mediator will provide for the options of the solutions to the problem which is determined
at the second stage.
 4. Clarification and agreement writing – This is the final phase of the process of mediation.
In this, the mediator will finalize the terms of the solution and then makes an agreement
signed by the parties to their problem.

Result: Blue Ocean Apparel & X-factor mutually solve this conflict and singed an agreement to
thin about future business. Blue Ocean Apparel is a good supplier, other hand X-factor is a good
buyer. To think about their business relationship, they both discounted each other. After
resolving this conflict through mediation their relationship now stronger than previous.

Option -2 (Negotiation)

Another method to resolve this conflict that is “Negotiation”. I can resolve this conflict through
negotiation. Negotiation will help you build better relationships also help to avoid future
problems and conflicts. A good negotiation leaves each party satisfied and ready to do business
with each other again and keep the door open for future.

Why choose negotiation:

 It can prevent a conflict from escalating by using "preventive diplomacy"

 It can open wide new areas of interests to both parties by expanding the “pie”
 It saves trouble & money by resolving in a short period of time disputes
 It improves communication maximizing the odds of a positive outcome 
 In court proceedings the judge decides. In negotiation the decision is in the hands of the
parties.
 It allows parties to tailor the decision to their own needs
 It works just as effectively in complex and simple daily disputes
 It can be used for resolving a dispute or making a deal

Blue Ocean Apparel & X-factor has good relation they have further business opportunity in
future. If I choose Arbitration maybe Blue Ocean Apparel will loss a good buyer. Though Blue
ocean Apparel invested a handsome amount of money to produce the product.
Result: After negotiation among Blue Ocean Apparel & X-factor both parties end up, at
minimum, within their target ranges. This could simply be reaching a fair middle ground that
both parties benefit from, or it could mean finding a creative new solution that improves the
position of both parties.

If both parties come to the table with goals that are mutually compatible, there is a good chance
that the negotiation can result in a win for both sides. Of course, there is nothing that prevents a
negotiator from trying to press an advantage and push the other side into a losing position, but
there is a risk in that case that the other side will walk away from the negotiation.

Win-win results are the most stable outcomes of negotiations; since both parties are happy with
the result, they have little reason to back out at a later time. Both parties have an incentive to
negotiate with each other again, laying the foundation for a mutually beneficial working
relationship.