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Alternative Dispute Resolution Paper

Stefanie James

Law 531

Instructor: Tom Jones

There are many disputes that happen is this world that can occur between family’s, friends, and businesses. Most people would think that these situations would be handled in court but going through the system takes time and can be expensive. Alternative Dispute Resolutions is a less cumbersome way to settle disputes without litigation. Some examples of the ADR form are arbitration, mediation, settlement and trial jury. Before the decision is made to handle a dispute, the cost and benefits need to be analyzed between which route to pursue, Alternative Dispute Resolution or the traditional litigation.

In San Antonio, Texas Joshua and Steve were friends who decided to come together and start a business selling shoes. The first step they took was deciding which form of business they would pursue. After consulting with a business specialist they decided to commit to a partnership. A partnership is a form of business that has more than one owner that are in control of making all decisions. One negative aspect is the partners have unlimited liability and are fully at risk for obligations of the business. This means all the debt of the business is the debt of the partners (Mallor, 2013). The income of the partnership has to be filed on the partners individuals federal taxes because all income goes to partners whether or not it was actually distributed to them or not.

The partnership was going good until Joshua fell behind on paying the rent for the business location where they were selling their shoes business. Steve was unaware that the rent had not been paid in months. The owner of the building, Michael who is a friend of the partnership, is now seeking financial compensation from the partnership for breach of lease. Even though it was Joshua who signed the lease

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