Final answer:
Businesses rely on the legal system to ensure that contractual and property rights are upheld, providing recourse in the event of noncompliance. When disputes arise, litigation may be the last resort to establish liability and enforce contracts.
Step-by-step explanation:
Businesses that engage in transactions and form contracts do so under the protection of a legal system that upholds contractual rights and property rights. These rights allow individuals and businesses to enter into agreements with confidence that they have legal recourse in the event of noncompliance. For instance, if a skilled surgeon performs a service and the patient fails to pay, the patient would, in effect, be committing property theft of the surgeon's services. In this scenario, the surgeon has the right to seek recourse through the legal system to enforce the contract and ensure payment. Litigation becomes a critical aspect of the resolution process when other dispute resolution methods fail, as it seeks to establish the liability of one party to another. Therefore, the statement that businesses may have to turn to litigation to establish liability in complex contractual disputes is true.