Article ReviewBusinesses face a number of potential legal issues that affect the way they operate. Potential legal issues for businesses include intellectual property, privacy, ethics and security. Legal disputes always cost money to resolve. The money required to resolve a dispute puts a strain on businesses. Some legal disputes can last for years, for example in Kraft v. Starbucks, a case that began in November 2010 and was finally resolved in November 2013. Article Synopsis In 1998, Kraft and Starbucks reached an agreement . Kraft has obtained the exclusive right to sell Starbucks bagged coffee in retail outlets. “Kraft began marketing Starbucks roast and ground coffee in 1998 and successfully built a highly profitable CPG business, growing from a base of approximately $50 million to approximately $500 million in 2010” (PR Newswire , 2013, P. 1). In November 2010, Starbucks informed Kraft of its intention to terminate his contract. Starbucks would no longer allow Kraft to exclusively market and produce Starbucks coffee. Kraft initially attempted to impose an injunction on Starbucks to prevent the breach of contract, but the court ruled in favor of Starbucks. In November 2013, Mondelez International, which split from Kraft in 2012, was awarded $2.7 million in damages in binding arbitration. Legal Question The conflict between Kraft and Starbucks is a legal question. Starbucks and Kraft have entered into a legal and valid contract. Kraft proposed to Starbucks to exclusively market, produce and sell bagged Starbucks coffee, and Starbucks accepted the deal. Starbucks demonstrated non-performance by failing to comply with the terms of the agreement. Originally, Kraft wanted to issue an injunction to prevent Starbucks from breaching the contract until...... middle of paper ...... resolves the dispute by honoring the contract with Kraft. Breach of contract is illegal and unethical. Starbucks decided the legal consequences of breaking its contract with Kraft were worth it. Every business must weigh the cost of each option and decide which direction to take. Most businesses avoid legal disputes to reduce operating costs. Works Cited Leo, S. (2013). Five common legal issues businesses face. Retrieved from http://www.businessdictionary.com/article/538/common-legal-issues-faced-by-businesses/PR Newswire. (November 12, 2013). Arbitration ends coffee contract dispute. Retrieved from http://search.proquest.com/docview/1450046726?accountid=458The New York Times. (February 25, 2011). In the Starbucks litigation, the court rejects Kraft's request. Retrieved from http://www.nytimes.com/2011/02/26/business/26starbucks.html?_r=0