Java Cafes, Inc

question 24

Multiple Choice

Java Cafes, Inc., and Kaffe Import Corporation dispute a term in their contract.
-Refer to Fact Pattern 3-1.The least expensive method to resolve the dispute between Java and Kaffe 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:

Material R

A specified type of raw material used in the production of goods, referred to as "Material R" for distinction purposes.

Fixed Expenses

Costs that do not change with the level of output or sales and remain constant over a period, such as rent or salaries.

Discontinuing Product

The process of ceasing the manufacture, sale, and support of a product line or brand.

Drag on Profits

Factors or expenses that reduce the overall profitability of a business.