I think you're misunderstanding the announcement. They're not taking legal action because they think the JV has underperformed. Rather, there's a clause in the contract that says if either JV partner breaches the agreement, the other can execute a put/call option (I don't know specifics, but this is good practice when establishing a JV)
So based on that:
- #1 is irrelevant to this specific arbitration process
- #2: RPs needs and desires don't really matter. Beam are suggesting that RP breached the contract, and the arbitration process will determine whether or not this is the case, and if they can execute the option
- #3: I see no reason why reputation would be damaged. Beam are going through the process defined in the JV agreement.
- #4: May need to reappoint a distributor here. Some potential for slow growth in US/CA whilst this is resolved. Don't forget RP also distribute other Beam manufactured products, and they lost the Garmin inReach. This would hurt them.
Also, either partner would be crazy to damage the JV before it's resolved, as they may end up owning the entire thing.
As for an 'amicable' way to reach the end goal, have a read of the following:
And how you implement them/resolve val differences:
These are just examples, not specific to the Beam contract, but it certainly sounds like they've structured the JV in this way.
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