BUSI 2601 Chapter Notes - Chapter 4: Judgment Debtor, Tral, Alternative Dispute Resolution
21 Jun 2016
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It is not in the best interest of a business to avoid all legal con ict at all costs. Northland is not being paid on a large account, it must risk a legal dispute or face the unpalatable alternative of a substantial writeoff. It could spell the end of northland if management were simply to concede defeat any time a legal problem seemed to be developing. Businesses like northland should seek, instead, to manage such disputes with the express goals of: avoiding time-consuming and expensive litigation, preserving desirable long-term commercial relationships. The delinquent customer - a customer failed to pay its account within the usual 30 days. Northland investigated, it discovered that the customer was in serious nancial dif culty. The customer"s refusal to pay its account may indicate that northland has failed in its procedures for extending credit. Management should explore this possibility to prevent recurrences.
