Question

ABCar Co is a new type of car company. They hire various subcontractors namely DesignCar Ltd.,...

ABCar Co is a new type of car company. They hire various subcontractors namely DesignCar Ltd., who designs the cars, ManuCar Inc., who manufactures the vehicles, and TestCar Co., who tests the cars before they are put into full production. Recently, ABCar Co has received many complaints about the failure of the braking system. There is a dispute between ABCar Co, DesignCar Ltd., ManuCar Inc., and TestCar Co. as to who is responsible for the problem and who must bear the cost to fix it.

Referring to the dispute resolution mechanisms you explained in question 3 (a) (you don't need to reproduce the information), which dispute resolution mechanism would you select to resolve this dispute and why would you select it? Why would you reject the other ones?


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Homework Answers

Answer #1

In the given case ABcar co. Is the car company which hires various subcontractors namely Designcar Ltd which designes the car and manucar Inc which manufactures the car and testcar.co which tests the car before they are put into full production.

The company has received many complaints from the suppliers about the failure of breaking system,

Testcar co. Is responsible for the problem as they are hired only for testing the final product before put into full fledged production but they had failed to identify the problem at the time of testing the car.ABcar co is to bear the cost to fix it as they are the owners of the company.

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