Explain why most business firms utilize litigation as a last resort fro dispute resolution. Suggest at least 2 options for avoiding a trip to court and why those options are preferable.
Litigation is when a company were to take legal action over something. Litigation is many times a last resort because it is not the most efficient way to handle problems. One option for avoiding litigation is to settle out of court, usually a financial settlement. This can help both parties end the dispute sooner, rather than later, and avoid legal records outlining the dispute becoming public. Also, many times before utilizing litigation both parties may know that one side does not have a strong enough side to win the case, even if there were things that were openly done. Time is precious, and saving time and avoiding many dates of trial can really be a benefit. Also, litigation can be expensive paying for continuous lawyers from start to finish. This is why many times litigation is avoided and people settle out of court.