Posted: September 14th, 2017

Mediation or Arbitration

The Vice Presidents of Reed & Barton, Corp. (hereinafter “R&B”) and Ralph Lauren, Inc. (hereinafter “RL”) enter into a contract whereby R&B will make stainless steel service wear (fork, knives, and spoons) for RL, to sell under the RL name and logo. Both parties agree in the contract that before going to court, if any dispute arises out of any terms of the contract, they will first submit the dispute to a neutral third party. The parties have agreed to which alternative method for resolving disputes: mediation or arbitration? Explain your answer, citing the facts in the problem that support your answer.