As with any company of this size, a wide range of disputes can arise with both internal and external parties, e.g. labour disputes, disputes with suppliers, land owners, etc. The company has a well staffed legal department and retains the law firm of Redfern and Findlay as its professional legal advisers. Both the head of the internal legal department and Redfern and Findlay believe that where possible disputes should be settled by alternative dispute resolution and this philosophy has been endorsed by the board of KayDarren Ltd. The following matters, inter alia, have arisen during the year at Kay Darren Ltd: A senior member of management in one of the company's divisions defrauded the company of approx R1m. The board wishes to recover this money and send a clear message to all employees that this type of action will not be tolerated by KayDarren Ltd under any circumstances. The company and one of its major customers in France are in dispute about the amount owed to KayDarren Ltd in respect of a transaction between the two parties. Redfern and Findlay have advised that the problem appears to have arisen because of a difference in an important clause in the contract relating to the transaction. The way the French contract is worded, is different to how the same clause is worded in the English contract. This contract does not contain a dispute resolution clause. The employees on a remote, recently opened mine belonging to the company have threatened to strike if KayDarren Ltd does not improve the living conditions of employees which they allege were promised when the mine opened. The mine employs most of the small local community, and the company is of the opinion that it has more than filled its promises. The employees do not belong to a union.

d) describe, with a brief explanation, the factors which should be considered by KayDarren Ltd in deciding in general, which dispute resolution method to follow. (10)

e) discuss which method of dispute resolution should be adopted in each of the matters listed above (1 3). Your discussion must include a justification of your choice. (10)