Business Law Delegated Legislation

SCENARIO

Following a disastrous rhubarb harvest, The Healthy Bowel Rhubarb Yoghurt Corporation Ltd. recently suffered heavy losses. The management have implemented an overtime ban and contacted their employee’s union, The British Union of Rhubarb Processors (BURP), to inform them of wage reductions.

BURP have consulted the TUC regarding strike action. BURP are very conscious that although their work force are highly trained, their skills are not readily transferable and their workers may not find alternative employment at a similar pay level. Similarly, The Healthy Bowel Rhubarb Yoghurt Corporation is aware that recruiting an alternative workforce in the highly specialised world of rhubarb yoghurt production almost impossible.

The owner of the Healthy Bowel Rhubarb Yoghurt Corporation Ltd., Sir Basil Healthy-Bowel, is deeply concerned about the state of his company and also, his own finances. His wife, Lady Chanterelle Golddigger-Healthy-Bowel has been so appalled at the cancellation of her credit and store cards due to her husband’s economy drive that she has instigated divorce proceedings for unreasonable behaviour. The relationship between her and her husband is very poor, and they struggle to communicate without considerable acrimony. There is much that needs deciding, whether the divorce should proceed or not and issues over the residency, education and trust funds of their daughter, Cleopatra-Maisiebelle-Chivogny Healthy-Bowel and their son, Bert. Lady Gold-digger-Healthy-Bowel has appointed a city divorce solicitor, Clementine Werewolf-Smith, whom Sir Basil finds intimidating.

Raoul Britannia and his wife Roya-Leyot, rent a cottage on Sir Basil’s estate and have always believed in the healthy properties of Rhubarb Yoghurt, and ensured it has been a major part of their children’s diet. Their children, Anya and Vanya have had extensive amounts of time out of school due to a rhubarb related illness. Personal injury solicitors, Smashan Grabbit have suggested the Britannia’s may have a claim against the Healthy Bowel Rhubarb Yoghurt Company but Raoul and Roya-Leyot hold Sir Basil in such high regard that they are sure there is a solution outside of the court system.

The Healthy Bowel Rhubarb Yoghurt Corporation Ltd. is contemplating entering a contract with Potto Packaging to supply yoghurt pots. Sir Basil is currently very cynical about all relationships and wants the contract to be written, recognising the potential for things to go wrong and include provision for that.

Alternative Dispute Resolution (ADR)

Task One:

The price of rhubarb is soaring, and Sir Basil is getting increasingly stressed. You work for Sir Basil’s solicitors, Howlings, and you received a frustrated message on your answerphone.

‘Do you have any idea of the stress I am under? Can I just stick them all in court? Is that the best plan? I am paying you £2000 an hour; I need some advice!’

You need to respond to Sir Basil. In your advice you should explain:

i) Does he have the option of taking the people with whom he is in dispute directly to court? (As a professional, you should refer to any relevant case law or legislation)

ii) Sir Basil is unfamiliar with ADR.

Explain to him how the various forms of ADR work, and how they might be appropriate in dealing with his disputes with;

a) Lady Golddigger-Healthy-Bowel

b) BURP

c) Raoul and Roya-Leyot Britannia

d) Potto Packaging

iii) Is it in Sir Basil’s interest to take all the parties to court? Explain to him the relative strengths and weaknesses of ADR.