Business Law Essay

Submitted By mskia34
Words: 868
Pages: 4

The total cost of ownership is an analysis that meant to find out the costs which may not be readily apparent. TCO helps to illuminate the benefits of an acquisition to avoid negative consequences in the running of a business. The benefits of carrying out this study help to reveal the costs involved in acquirement, upkeep and operations. It helps to conduct an evaluation to find better and improved competing solutions and shun the hidden costs and the unexpected surprises. The total cost of ownership evaluates the cost of ownership in the full ownership life of the product or service in the acquisition. Ownership life begins when the service or the product starts causing some form of costs. TCO analysis helps to calculate the financial impact of the total time when the product or service will be in use.
TCO helps to analyze various types of costs which will have financial impacts from the ownership which include familiar or obvious costs and the hidden costs. The obvious cost includes the cost of purchase and the maintenance costs like warranty and maintenance costs. On the other hand, hidden costs are easy to overlook when making acquisition decisions. Hidden costs vary with the different kinds of acquisitions in different industries. However, some of the likely hidden costs may involve acquisition costs, change management costs, operating costs, physical/electronic security costs, insurance and infrastructure costs. Through evaluation the length of time to use a particular type of service or product need to be considered.
Courts and Dispute Resolution
Courts provides legal systems that assist in resolving legal disputes. The court sessions follow an integral part of the civil justice system. This can take a long time to find the solution which can be an expensive way of resolving disputes to a business (Chornenki& Hart, 2003). The legal process is often lengthy since the case is honestly and openly discussed. The process ends up as a costly affair. On the other hand, dispute resolution has an upper hand in comparison with the legal justice system.
The time it takes to resolve a case is short in comparison to the courts. It takes less time to reach a decision where as in the court it takes a long time before the judge can listen to the case and give a verdict. The overall costs involved in settling disputes through a legal process can adversely affect the business. Dispute resolution would be a better way to speed up settlements and takes less time.
Dispute resolution is far more flexible and accessible than a legal process in courts. Flexibility is possible when choosing the terms of industry standards to use. Accessibility helps to adopt an informal and less complicated way to resolve disputes than following court proceedings
Use of dispute resolutions can be effective since it involves the use of an expert in the field. The expert reduces the costs needed to educate and explaining to judge matters and detailed facts about the case. Additionally, the expert takes less time and money to get to the main issues and swiftly solve the case (Sourdin, 2004). Using a dispute resolution to solve a case reduces unpredictabilities and decrease the costs in terms of damage rewards. Avoiding court cases and getting expert advice can assist in getting reasonable damages to the claimant if they are necessary.
Dispute resolutions satisfy the parties involved where they set up the basis for dispute resolution. This process thus reduces costs that may arise in case the disputes rise again. Additionally, this method helps to keep