What is the difference between business litigation and business arbitration?

Business litigation and business arbitration are both legal avenues that can be used to resolve disputes between businesses. The primary difference between the two is that business litigation is a court-based process, while business arbitration is an out-of-court solution. In business litigation, one or more parties file a lawsuit claiming that the opposing party has breached a contract, committed negligence, or violated some other provision of the law. The court will then hear both sides of the dispute and decide the outcome. The court can issue orders and judgments that must be followed by all parties involved in the dispute. In business arbitration, the parties involved in the dispute agree to have a third-party mediator or arbitrator to determine the outcome of the dispute. The arbitrator is usually someone with knowledge of the subject matter and expertise in legal matters. The arbitration process is generally faster than litigation, and the parties have greater control over the outcome since they can decide the rules and scope of the arbitration. The results of arbitration are binding on the parties, and they must abide by the decision of the arbitrator. Both business litigation and business arbitration can help resolve disputes between businesses, but they are two distinct processes. Businesses should carefully consider both options before making a decision.

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What is the difference between business litigation and business arbitration?

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