What is the difference between arbitration and litigation?

Arbitration and litigation are two different methods of resolving legal disputes. Arbitration is generally a faster and less expensive way of settling a dispute. It also often happens quickly, usually within months of filing, and does not require the same amount of time and money as litigation. In the United States, arbitration is governed by Federal and state arbitration laws. In Oregon, the Oregon Arbitration Act establishes the rules and regulations for resolving securities-related disputes using arbitration. In litigation, a dispute is usually resolved by a judge or jury. This can be a longer and more expensive process, as it often involves an extended trial period with the parties submitting evidence and witnesses to testify. It also requires the parties to pay for expensive attorneys and court costs. In arbitration, a dispute is settled through a neutral third-party arbitrator. The arbitration process generally takes place outside of the court system and is faster and less expensive than litigation. The parties present their cases and the arbitrator decides the outcome. Arbitration and litigation both have their advantages. Litigation is best for disputes that require a court ruling or jury determination and involve complex legal questions. Arbitration is often a better choice for disputes that require the parties to reach a resolution quickly, and it is often less expensive than litigation.

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