Sterling Computers And Nobugs

Sterling computers collaborated with NoBugs, a company that makes computer microchips. The partnership was developing well until an occurrence strained the business relationship between the two firms. However, the incident had several negative implications on both companies, and an amicable solution is mandatory. NoBugs made a costly mistake that would prompt litigation. If Sterling opts for litigation against NoBugs because of breach of contract, they have a strong case, although this option may not necessarily be ideal (“Breach of Contract,” n.d.). In the case involving Sterling Computers and Nobugs, Sterling has a viable breach-of-contract claim. NoBugs should have known or knew about the faults in the microchips. Thus, Sterling has a reasonable

As arbiters divide the differences in half, Sterling, however, is less probable to regain what it believes is the complete measure of its loss (“Arbitration vs. Litigation,” n.d.). In addition, since adjudication entails the adversary presentation of proof and discovery, it frequently has drawbacks similar to those of litigation without the merit of maximizing recovery (Cushman & Myers, 1999). For this reason, I believe mediation would be a decent option for Sterling Computers as it would combine the benefits of arbitration and settlement and could generate a creative settlement offer more appealing to NoBugs. Nonetheless, a disadvantage of mediation is that if the mediator comes up with a way out that NoBugs concurs with, but that is undesirable to Sterling, the parties may end up in a worse position than if they opted for a private settlement (“The Pros and Cons,” n.d.). Overall, the critical query for Sterling Computers is the significance of NoBugs to its forthcoming business prospects. If the firm is not any more reliant on NoBugs as other suppliers of chips exist in the industry, Sterling should take a hard line and try to recoup all its losses. Conversely, in the event NoBugs is likely to remain a crucial business partner in the future, Sterling should attempt to settle the row amicably with no outside intercession. However, they may seek the assistance of an arbitrator or mediator if the initial discussions are fruitless (“The Pros and Cons,”