court trial or alternative dispute resolution

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Jake and Judy are in a major dispute over a complex business deal they made with each other. The business deal involves sale of a business from Jake to Judy for over a million dollars, but they are each making claims against the other that are preventing the deal from closing.

They each claim that sudden changes to the business that took place after the purchase agreement makes the closing unfair to their side. The seller claims that the business has gained value and the buyer claims that the business has lost value. They each claim that nondisclosure of facts by the other party allows them to drop out of the deal, and both claim they will complete the deal if the other party is willing to compromise.

They are each willing to go to court, to use arbitration, or to use mediation. Which method do you think is best for this situation? Why? What questions might you ask of each party before you make up your mind?

 

 

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