Alternative Dispute Resolution

Alternative Dispute Resolution

The business manager of Videos Inc. is disputing that the companies’ investment advisor failed to advise him of Moviebuster’s failing stocks. Mr. Chip the business manager of Videos Inc. invested 100,000 dollars into Moviebusters under the assumption that their stocks were doing well. However, three days later Moviebusters stock prices dropped drastically low, and two days later the company went bankrupt. Mr. Chip wants the companies’ money back, stating that when he invested the money into Moviebusters, he was under the assumption the company stocks were doing well, when in fact the stocks were not doing well when he invested in them. Mr. Chip states that it was up to the investment advisor to make it aware to him and his company that the investment was not a good choice.

The dependant Mr. Pumpkins states that although he is the company’s investment advisor it is not up to him to make sure the company does not invest in bad stocks, but just to help advise them of what might be a better choice. Overall, Mr. Pumpkins states that it is the companies’ responsibility to make sure they invest in the right companies.

The arbitrator, Mr. Gizmo decides that the defendant Mr. Pumpkins need to pay Video Inc. the 100,000 dollars back. The arbitrator states that it was the defendants duty to act in the best interest of Video Inc.. When Mr. Pumpkins failed to tell Video Inc of the falling stock prices, he was not doing his job.

The qualifications of an arbitrator are: that the 3rd party must be unbiased must be neutral. The arbitrator is selected by mutual consent, and their qualifications are known to the parties, the law imposes no actual or further qualifications. However the two parties can have a contract which states that the arbitrator must possess certain qualifications