Introduction

In this paper I will create a corporate compliance plan paper for Riordian¹s virtual organization. This plan will focus on managing the legal liability of officers and directors of Riordian. This plan will address ADR, enterprise liability, product liability, international law, tangible and intellectual property, legal forms of business, and governance.

ADR

Alternative dispute resolution (ADR) will be used for resolving complaints and disagreements without the use of attorney¹s or going to court. ADR will be the preferred method for resolving complaints and disagreements so both sides can reach an agreement quickly. ADR is preferred because it is efficient and an effective way so parties can continue to do business together.

ADR processes are alternative methods of helping resolve legal problems before going to court. ADR involves an independent third person who helps resolve or minimize the conflict. Using ADR can result in the more efficient, cost-effective resolution of disputes with greater satisfaction for both sides involved. Most courts recognize ADR as a tool for settling disputes. The two types of ADR¹s that can be used at
Riordian¹s are arbitration or mediation.

1.) Arbitration is used to resolve complaints in a forum that is less formal setting than a trial. If arbitration is chosen participation will be voluntary a private third party person will be chosen as a judge and will impose a resolution after both sides have presented their case. Depending on the dispute arbitration can be binding or nonbinding. If binding arbitration is chosen then the decision is final. The parties cannot appeal the decision to any court. Nonbinding arbitration means if the parties are not satisfied with the results in the arbitration; the case may still be litigated. The Federal Arbitration Act (FAA) was passed to stop judicial decisions that made arbitration clauses invalid. The U.S. Supreme Court provided its interpretation in case 4.1 the binding nature of arbitration clauses in contracts under the FAA.

2.) Mediation is a process in which both parties meet with a neutral mediator. Both parties will have the chance to explain their position. The mediator helps parties arrive at a mutually agreeable solution the mediator does not issues a decision; the role of the mediator is to try to get the parties to agree on a solution. The mediation process will be completely confidential. Mediation is not binding unless the parties have agreed to be bound by the decision.

Enterprise liability

Enterprise liability is a legal doctrine under which individual entities can be held jointly liable for some actions on the basis of being part of a shared enterprise. To minimize the enterprise liability at Riordian¹s any partners or subcontractors that does business with
Riordian¹s will be held to the same standards as any employees at
Riordian¹s. Riordian¹s can and should perform periodic checks on joint partners to reduce Riordian¹s enterprise liability.

Product liability

Product liability should be a concern for all products that are produced at Riordian¹s. To ensure customers are aware of the products sold by Riordian¹s, a product liability statement will be printed on the label of every product produced by Riordian¹s.

Riordian¹s managers can reduce the risk of liability cases by inspecting products to ensure the product liability statements are clearly understood and legally sound. The product liability statements are important because over the last few years the courts have changed from the buyer beware labiality. To now the company is found labial for the products they produce if the product is found defective. In 2002, the median award in product liability cases was