| Course | BUS 225 Legal Environment of Business |
|---|---|
| Module | Module 2 |
| Paper type | Dispute resolution analysis |
| Length | About 1,058 words, 6 pages |
| Format | APA 7 student paper |
| School | Aspen University |
| Program | Business Administration |
| Updated | September 2026 |
Free sample paper for BUS 225 Module 2
Court, Mediator or Arbitrator? Resolving a Supplier Dispute Over Defective Zippers
Student Name
Business Administration Program, Aspen University
BUS 225: Legal Environment of Business
Instructor Name
Month Day, Year
Court, Mediator or Arbitrator? Resolving a Supplier Dispute Over Defective Zippers
In March, a Utah manufacturer delivered 1,200 packs sewn for Pinecrest's house brand at $72 each, an order worth $86,400. Within six weeks, customers began returning packs because the main zippers split. Pinecrest refunded 164 buyers, pulled the rest of the stock and refused to pay the final invoice of $43,200. The manufacturer says the zippers met the specification in the purchase order and that Pinecrest's customers overloaded the packs. Pinecrest says the zippers were a cheaper substitute for the model named in the order. Both sides have lawyers, and neither wants to lose a relationship that has lasted six years. This paper compares three ways to resolve the dispute: a lawsuit, mediation and arbitration.
How a Civil Lawsuit Unfolds
Litigation begins when the plaintiff files a complaint and serves it on the defendant, who answers, may file counterclaims and may move to dismiss. Next comes discovery, in which each side can demand documents, ask written questions and take depositions of witnesses under oath. After discovery, either side may ask the court for summary judgment, arguing that the facts are not genuinely disputed. Cases that survive go to trial before a judge or jury, and the losing party may appeal. Here the manufacturer would likely sue for the unpaid $43,200, and Pinecrest would counterclaim for its refunds, lost sales and the value of the unsold packs.
The Cost of Going to Court
For a dispute of this size, the process itself is often the largest expense. Discovery would require both companies to collect emails, specifications, test reports and customer complaints, and to take depositions of the buyers, the factory manager and possibly the zipper supplier. Each side would probably need an expert on textile hardware. A contested case of this kind can take eighteen months or more to reach trial and can cost each party a large share of the amount in dispute. Filings are public, so customers and competitors could read about defective packs. And a trial leaves the outcome to a stranger, with little chance that the two companies will keep working together afterward.
Mediation
In mediation, a neutral third party helps the parties negotiate but has no power to decide. The mediator meets with both sides, often separately, tests each side's view of its case and looks for trades that a court could not order. Here, a mediator might explore whether the manufacturer would replace zippers on the unsold stock, credit part of the final invoice and change zipper suppliers for future orders, while Pinecrest pays the balance. Mediation is private, usually takes a day or two and costs a small fraction of litigation. Its weakness is that it produces nothing unless both sides agree.
Arbitration
Arbitration replaces the court with a private decision maker whose award is binding. The parties can choose an arbitrator with textile or manufacturing experience, keep the proceeding confidential and limit discovery. Under the Federal Arbitration Act, a written agreement to arbitrate a commercial dispute is valid, irrevocable and enforceable except on grounds that would undo any contract (Federal Arbitration Act, 2018). The Supreme Court has read the act broadly, holding that it preempts state rules that interfere with enforcing arbitration agreements as written (AT&T Mobility LLC v. Concepcion, 2011). The trade-off is finality: courts can vacate an award only for narrow reasons such as fraud, arbitrator bias or an arbitrator exceeding his or her powers, and parties cannot contract for broader review of legal errors (Hall Street Associates, L.L.C. v. Mattel, Inc., 2008).
Is There an Agreement to Arbitrate?
Arbitration requires consent. Pinecrest's purchase order is silent on disputes, but the manufacturer's order acknowledgment contains a clause sending all disputes to arbitration in Salt Lake City. Whether that clause became part of the contract depends on the rules for conflicting business forms, a question the next module examines. If it did not, the parties can still agree to arbitrate now. Either way, the decision should be made deliberately rather than left to a form neither side read.
Comparing the Routes
The table summarizes how the three routes compare for this dispute.
| Factor | Litigation | Mediation | Arbitration |
|---|---|---|---|
| Who decides | Judge or jury | The parties | Chosen arbitrator |
| Time | Often 18 months or more | Days to weeks | Several months |
| Cost | Highest | Lowest | Moderate |
| Privacy | Public record | Confidential | Usually confidential |
| Appeal | Full appeal on legal errors | None needed | Very limited |
| Relationship | Likely ends | Can be preserved | Strained but possible |
Recommended Sequence
Pinecrest should propose mediation first, within thirty days, with a mediator experienced in supply contracts. Before the session it should organize its evidence: the purchase order naming the zipper model, photographs of the failed zippers, the return records and an independent lab report comparing the installed zippers with the specified model. If mediation fails, Pinecrest should offer binding arbitration before a single arbitrator with manufacturing experience, with limited document exchange and a hearing within six months. Litigation should be the last resort, used only if the manufacturer refuses both or if Pinecrest needs an urgent court order. For the future, Pinecrest's purchase orders should include a dispute clause calling for negotiation, then mediation, then arbitration, so the path is settled before the next problem.
What Each Side Risks
A realistic view of the risks makes settlement easier. Pinecrest's strongest evidence is the purchase order naming a specific zipper model; if lab testing confirms a substitute, the manufacturer's defense largely collapses. Its weakest point is damages: lost future sales and harm to the Switchback name are hard to prove. The manufacturer's risk is the reverse. It is owed a clear sum on the final invoice, but if it installed cheaper zippers, it could owe more than it is owed. Both sides therefore face real downside, and each has something to gain from a quick, private agreement that keeps future orders flowing.
Conclusion
A lawsuit over defective zippers would be slow, public and expensive, and it would almost certainly end a six-year relationship. Mediation offers a quick, private chance at a creative settlement, and arbitration offers a binding decision by an expert at lower cost than court, with very limited review. For a dispute where both parties want to keep working together, a stepped approach that starts with mediation and falls back on arbitration gives Pinecrest the best balance of cost, control and finality.
References
AT&T Mobility LLC v. Concepcion, 563 U.S. 333 (2011).
Federal Arbitration Act, 9 U.S.C. ยงยง 1-16 (2018).
Hall Street Associates, L.L.C. v. Mattel, Inc., 552 U.S. 576 (2008).
BUS 225 Module 2 instructions, in plain terms
BUS 225 lists litigation among its core topics, and a second-module paper often asks students to compare court with alternatives. Since the actual Module 2 instructions come through the classroom, this example compares all three routes for one dispute. Describe the stages of a civil lawsuit in order, and explain where the time and money go. Define mediation and arbitration precisely, noting who decides in each. Cite the statute that makes arbitration agreements enforceable and at least one case on how courts treat them. Check whether the parties actually agreed to arbitrate. Compare the routes on consistent factors, then recommend a sequence that fits the parties' goals, including whether they want to keep doing business together.
How this BUS 225 Module 2 example is built
The paper opens with 1,200 packs, 164 refunds and a withheld final invoice. It walks through complaint, answer and counterclaim, discovery, summary judgment, trial and appeal, then explains why discovery and experts would make a court fight costly. Mediation is described as a private negotiation led by a neutral with no power to decide, with possible trades such as replacement zippers and a partial credit. The arbitration section cites the Federal Arbitration Act, the 2011 Concepcion decision and the 2008 Hall Street ruling on narrow review. A short section flags the arbitration clause in the factory's acknowledgment form. A six-row table compares the routes, and the risks each side faces lead to a mediation-first plan.
Where the marks sit in the BUS 225 Module 2 rubric
A dispute resolution paper earns credit for accurate procedure, clear definitions, correct law on arbitration and a recommendation fitted to the facts. This sample names each stage of a lawsuit and ties the cost discussion to what discovery would require in this case. Its APA references are the Federal Arbitration Act and two Supreme Court opinions, Concepcion and Hall Street, which support the points on enforceability and limited review. Noticing that arbitration depends on an actual agreement, and that the agreement here is uncertain, shows careful reading. The stepped recommendation, with evidence to gather before mediation and a dispute clause for future orders, turns the comparison into a plan.
BUS 225 Module 2 help from the desk
Many students describe arbitration as simply a cheaper trial. Explain that it is binding and that review is very limited, which is a real trade-off. Another error is treating mediation as a decision process; a mediator cannot impose anything. Don't assume a contract contains an arbitration clause; check the documents. Keep the comparison on the same factors for each route so the table is fair. Tie the recommendation to what the parties want, such as keeping a supplier. Name specific evidence each side would need, and say what the business should put in place so the next dispute follows an agreed path. If you are unsure how discovery works in practice, ask a tutor to walk through a simple example of document requests and depositions.
Write yours, or have the desk draft it
This paper is an original model document written by our desk, not a submitted student paper and not an official Aspen University document. Read it for the moves, then write your own to the instructions in your classroom. If you want one built to your exact prompt and rubric, the first custom sample is free and arrives in 24 to 48 hours.
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BUS 225 Module 2 questions, answered
What does BUS 225 Module 2 usually ask for?
Aspen's BUS 225 covers litigation and alternative dispute resolution, so a paper comparing a lawsuit with mediation and arbitration for a business dispute is typical. Follow your classroom prompt.
What is the difference between mediation and arbitration?
A mediator helps the parties reach their own agreement and cannot impose one; an arbitrator hears the case and issues a binding decision.
Can an arbitration award be appealed?
Only on narrow grounds such as fraud, bias or an arbitrator exceeding his or her powers; courts do not review awards for ordinary legal errors.
Where can I find a free BUS 225 Module 2 sample paper?
Scroll up for the full paper, which compares a lawsuit, mediation and arbitration for a supplier dispute over defective zippers and recommends a stepped approach.
Why do businesses choose arbitration?
For a private, usually faster process before a decision maker with industry expertise, accepting in return that the award can rarely be challenged.