Should probably also accept:
The relationship is already not good
"Already not" is the hebrew way to say "no longer"
Agreed. Reported it.
ma'aréchet ha-yechasím kvar lo tová.
I third the motion and have reported it.
Likewise did I.
Could this be a business partnership, a love relationship or both?
It could be any kind of relationship.
Since it appears not to need the object noun, could I begin, "Our relationship. . ."?
There is nothing in this sentence that say it's "our relationship". It says just "the relationship". It could be talking about any kind of relationship.
What is the literal translation of the words מערכת היחסים each on their own?
The word מערכת is something like "set, system" and יחס is "attitude, relation".