What common legal resolution is typically sought after a warranty claim is denied and mediation fails?

When a warranty claim is denied and mediation has not resulted in a resolution, arbitration is often sought as a common legal resolution. Arbitration is a process where a neutral third party, known as the arbitrator, is brought in to make a binding decision on the dispute. This method is frequently included in contracts, sometimes as a mandatory step requiring parties to resolve their differences outside of court.

Litigation can certainly be pursued after mediation fails, but it often involves a more lengthy and public process in the court system. Some might consider a second round of mediation, but it is less common because the parties have already attempted to resolve the issue without success. Settlements can occur, but they typically happen during negotiations or post-arbitration rather than as a direct alternative to litigation. In this context, arbitration serves as a structured and usually more expedient way to resolve a dispute after mediation has failed.