If the plaintiff and defendant cannot reach a settlement, what occurs?

• A. The case is dismissed outright
• B. The case goes to arbitration
• C. The judge issues a default ruling
• D. The case proceeds to trial before a court of competent jurisdiction

Answer: (D)

When settlement fails, the dispute moves into the court system for adjudication. Arbitration isn’t automatic—it's a separate path that requires an agreement to arbitrate. A default ruling happens only if one party doesn’t respond or appear in court, not simply because there was no settlement. Dismissal can occur for procedural reasons, such as lack of jurisdiction or failure to prosecute, but it isn’t the normal next step when the merits must be decided. So, the case proceeds to trial before a court of competent jurisdiction, where the judge (and possibly a jury) will hear the evidence and issue a binding decision.