What are the sources of conflict between Lucid and Black Box?

Lucid’s first order of 1,000

high-res televisions was delayed by several months without reason, resulting in Lucid losing
contracts with some of their distributors. As well as late shipments, Lucid discovered that some
of their distributors had Black Box high-res televisions in stock. This led them to believe Black
Box must have been contracting directly with these retailers, which is in breach of their exclusive
contract. Black Box also began marketing their own 3D tv in the same region that Lucid held
their business, despite the contracting give Lucid the right to any updates in the tv product lines.

Which dispute resolution procedure should lucid use? Why? I believe that Lucid should first
attempt to negotiate with Black Box, this way they can bring up the problems they experienced
and give Black Box a chance to remedy the situation. An improvement in communication
between the two companies could solve a handful of their issues. If negotiation goes nowhere, I
believe they need to litigate in order to truly find out if Black Box breached their contract. This is
a serious step but a necessary one if there was truly a loss of money and business opportunities.

If Lucid decides to negotiate with Black Box, what kind of negotiation tactics should be
employed? First, they need to listen, which begins by separating the people from the problems.
Focusing on just the problems will make for a much quicker and more efficient negotiation.

How can Lucid and Black Box improve their supply chain relationship? This needs to be
turned into a contractual relationship with clauses and provisions that protect each company.
There needs to be a spelled-out contract because of how complex and large these companies are.
Communication will also need to improve for this to be a successful relationship, as well as
improving the actual logistics of the agreement. Better communication