What term is used for an action brought in court regarding a dispute over settlement amounts?

• A. Claim
• B. Litigation
• C. Arbitration
• D. Mediation

Answer: (B)

The term used for an action brought in court regarding a dispute over settlement amounts is litigation. Litigation refers specifically to the process of taking legal action or resolving disputes through the court system. In the context of settlement amounts, litigation is the formal means by which parties seek a judicial resolution to disagreements that may arise after contract negotiations or during the claim process.

In contrast, a claim is typically an assertion of a right, demanding compensation or remedy, but does not convey the formal legal action or process. Arbitration and mediation are alternative dispute resolution methods that occur outside the court system; they involve neutral third parties to help resolve disputes but do not involve court proceedings, which differentiates them from litigation.