The legal framework and procedure that should be followed to resolve the potential or existing dispute between the firms or other parties to an externality are critical (Kaul, 1999). It is therefore important that strategic tools are put in place and surrounding factors captured in settling the affecting individuals.There are legal frameworks that guide the bargaining power of the affected parties when it comes to externalities.It is therefore important that strategic tools are put in place and surrounding factors captured in settling the affecting individuals.The objective of this study would involve determining various forms of externalities that a firm presents to the society. It would also help in establishing whether there are diverse resolutions legal mechanisms to the affected individuals through systematic bargaining approach.
Externalities have remained a critical aspect of the corporate world and its relationship with the members of the community (Kaul, 1999). The establishment of a legal bargaining process for the affected members is key in promoting the general welfare of the society by the firms. Besides, the outcomes of the research would provide information that would serve as a literature review in further future studies.
Collecting relevant data and incorporating them into existing legal framework reforms would be an uphill task considering the deep political aspects of the corporate world. Besides, the research requires a significant amount of funds and time which poses a real challenge to the resolution mechanism establishment.