Distributorship Loses Sole Supplier-No Dispute-Resolution Clause An Albertan company, ABC Ltd (ABC), has been an exclusive available: howevec, ABC has enough imventory to satisfy its curdistributor for ten years of XYZ Inc's (XYZ) custom engines and rent orders from third parties. Following notice of the terminsuspensions in Canada. ABC's business depends on XYZ's prod- ation of the agreement. ABC repeatedly attempted to contact ucts. XYZ's headquarters and manufacturing plant are located its XYZ counterparts to no avail. ABC has heard a rumour that in California. The standard terms of the distributorship agree. XYZ has decided to open its own subsidiary in Canada and sell ment between the two companies were subject to negotiation its products directly. and modification, however, no dispute-resolution mechanism or choice-of-law clauses were included in the contract. XYZ Critical Analysis Questions decided to terminate the distributorship agreement with im- 1. Review the dispute-fesolution methods and the factors mediate effect without cause and without notice. ABC was enabove and explain what the most appropriate and least raged by the unilateral decision of XYZ and its failure to first appropriate dispute-resolution method would be from negotiate a reasonable change to the agreement if it was disABCs perspective. satisfied with the long-term arrangement. The without-notice 2. Should ABC decide to enter into another exclusive termination of the agreement puts ABC in a precarious position distributorship agreement in the future, what financially, as it is likely to go out of business if it can no longer contractual clauses should it incorporate in order to sell XYZ's products. No comparable products are immediately avoid a similar situation