Four years ago, you decided to follow your lifelong passion and open up a restaurant with your

Fantastic news! We've Found the answer you've been seeking!

Question:

Four years ago, you decided to follow your lifelong passion and open up a restaurant with your cousin Hazel. The two of you agree that you will each provide one-half of the startup capital and that you will both work full time to contribute to the success of the restaurant. You use your combined startup contributions to buy and decorate a building; to purchase all of the supplies, equipment, and food inventory to get started; and to advertise your new restaurant, which you call Two Cousins. Just to make things official, you and Hazel sign a contract that outlines each of your contributions, specifies that you will both commit time and resources to the venture for a period of at least 5 years, and states that you will both share equally in the gains and losses of the venture.

For the first 6 months, Two Cousins is a huge success. People come from miles around and wait for an hour or more to be seated, just to have the opportunity to dine in your restaurant. They are drawn by the delicious entrées (which are your specialty) and the fantastic desserts (which are Hazel's specialty). The restaurant is receiving great reviews and the business is improving each day.

Suddenly after 6 months, Hazel tells you that she is tired and wants out of the business. She says that she wants you to "cash her out" so that she can retire in the Bahamas. You do not want her to leave because you are afraid you will lose the customers who are drawn by Hazel's desserts. You want Hazel to live up to her contractual obligations.

You are now trying to determine which method of dispute resolution would be best and most cost effective and would provide the fastest resolution. Assume that you have tried to talk to her and work it out but that she is not willing to change her mind.

Which of the following would you use to settle the dispute between you and Hazel — litigation, mediation, or arbitration? Explain why. Also, in your answer describe each of the three methods (litigation, mediation, and arbitration)
What are the advantages and disadvantages of using each of the three methods (litigation, mediation, and arbitration) to settle your dispute?