What is the term for when a buyer and seller agree that disputes will be resolved without going to court?

The correct term for when a buyer and seller agree to resolve disputes without resorting to court is arbitration. Arbitration is a form of alternative dispute resolution (ADR) where the parties involved choose an arbitrator or a panel to make a binding decision on their dispute. This process is often preferred because it can be quicker, less formal, and more cost-effective than traditional litigation, allowing the parties to maintain confidentiality and potentially achieve outcomes tailored to their specific needs.

In contrast, patenting refers to the process of obtaining legal rights for inventions, litigation involves formal legal proceedings in court to resolve disputes, and WIPO (World Intellectual Property Organization) is an agency that focuses on intellectual property issues, rather than dispute resolution between buyers and sellers. Thus, arbitration specifically addresses the method of resolving disputes outside of the courtroom context.