BUSI 2601 Chapter Notes - Chapter 2: Alternative Dispute Resolution, United Nations Commission On International Trade Law, Accounts Receivable
29 Jan 2018
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Document Summary
Litigation arises when one party brings a legal action against another. Plaintiff: the party that initiates a lawsuit against another party. Litigation should be deployed only when all other feasible methods have failed and the claim cannot realistically be abandoned. Complicated litigation is a drain on corporate resources, diverts operations from profitable business, and causes stress for those involved. In short, litigation is generally slow, expensive, and unpredictable. The legal foundation and outcome of a lawsuit are governed by legal rules contained in common law and statute law. Limitation period (the time period specified by legislation for commencing legal action) vary widely. But the general rule is that the right to sue is lost after the applicable period of time ends. Providing a very strong incentive for plaintiffs to advance their claims within a reasonable period of time. Preventing plaintiffs from advancing old claims in which evidence has been lost because time has passed.
