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Arbitration is a method of resolving disputes outside of court in which the disputing parties agree to submit their disputes to one or more arbitrators who will provide a binding decision.
Litigation is the process of resolving disputes through the formal justice system in court. In litigation, the judge decides the outcome of the dispute based on the evidence and arguments presented by the parties.
ADR covers a variety of dispute resolution methods outside of court, including arbitration, mediation, and negotiation.