Fact Pattern 2-1 Bean Vendors,Inc.,and Java Bistros Corporation Dispute a Term in Their

question 18

Multiple Choice

Fact Pattern 2-1
Bean Vendors,Inc.,and Java Bistros Corporation dispute a term in their contract.
-Refer to Fact Pattern 2-1.The least expensive method of resolving the dis-pute between Bean and Java may be

• A)arbitration because the case will be heard by a mini-jury.
• B)litigation because each party will pay its own legal fees.
• C)mediation because the dispute will be resolved by a non-expert.
• D)negotiation because no third parties are needed.

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Definitions:

Related Party Transaction

A deal or arrangement between two parties who are joined by a special relationship prior to the deal.

Significant Influence

The power to participate in the financial and operating policy decisions of an investee but not to control those policies.

Related Parties

Individuals or entities that are closely connected to a business, potentially influencing the financial and operating results.

Investment

The allocation of resources, typically money, in the expectation of generating an income or profit.