What is the main difference between arbitration and litigation?

The main difference between arbitration and litigation is that arbitration is typically conducted with the assistance of an arbitrator, who serves as a neutral third party to resolve disputes, whereas litigation is carried out in a court setting and is presided over by a judge. This distinction is significant because it shapes how each process is conducted.

In arbitration, the procedures are generally more flexible and less formal than in court, allowing parties to come to an agreement without the rigid structure of a courtroom. The role of the arbitrator is to hear both sides of the dispute and make a binding decision, while in litigation, the judge oversees the legal process, determines admissibility of evidence, and makes rulings based on established laws and procedures.

The other options present different aspects of arbitration and litigation but do not capture the fundamental structural difference between the two processes. For instance, while it is true that arbitration can be faster than litigation, as cases can often be resolved without the same lengthy timetable as court proceedings, this is not a defining characteristic that distinguishes arbitration from litigation. Likewise, the expense associated with arbitration compared to litigation can vary significantly based on various factors, so it is not accurate to assert that arbitration is always more expensive. Lastly, while arbitration may be seen as more informal,