According to the FindLaw website, arbitration is defined as: “Arbitration is one of several methods that together are referred to as alternative dispute resolution, or ADR. As the name suggests, the idea behind ADR methods is to provide an alternative to filing a lawsuit and going to court, which is the traditional method of resolving legal disputes. Arbitration and similar alternatives were designed primarily to provide a streamlined, cost-conscious option for addressing a legal matter.” (www.findlaw.com) Where according to the business dictionary, litigation is defined as: “The final legal method of resolving disputes or disputes between people, organizations and the State. In the litigation process, a case (called a suit or lawsuit) is brought before a court properly authorized (having jurisdiction) to hear the case, by the parties involved (the litigants) for resolution (the judgment).” (www.businessdictionary.com) Dispute arbitration is generally the venue chosen to resolve a dispute in business. Several reasons for this consensus are that arbitration can be quicker, less expensive, confidential, and final (no appeals). According to Reed, Shedd, Pagnattaro, Morehead “The Securities and Exchange Commission (SEC) has approved an agreement under which investors who have claims against securities must submit them for arbitration to arbitrators assigned by the various stock exchanges and the Regulatory Authority of the financial sector". (131,132) After reviewing this week's case study, our text shows three possible scenarios of what the judge might do, at this time I would like to address each. In the first scenario, the judge might allow the arbitration to proceed, even though there...... half the paper...... along with millions of other people's money. Both Securities America and stockbroker Ron Carazo violated good faith business practice and both should pay for their wrongful actions. In closing, if I were the judge, I would certainly let the arbitration proceed and suggest that a civil lawsuit be filed against Mr. Carazo.References Cited: http://adr.findlaw.com/arbitration/what-is-arbitration-. html#sthash.fW6sypcA.dpufis a process retrieved 5-25-2014 http://www.businessdictionary.com/definition /litigation.html#ixzz32mOD8sTl retrieved 5-25-14Reed, OL, Shedd, PJ, Pagnattaro, MA , Morehead, J. W. (2010). The legal and regulatory environment of businesses. pp132-133. New York, NY: McGraw-Hill Irwin 15th Edition http://resources.lawinfo.com/civil-litigation/civil-procedure/class-action/the-advantages-and-disadvantages-of-class-act.html retrieved 5-25-14