Rules and regulations may also be found in unpublished policy statements. In addition, Japan's 47 prefectures, while not autonomous, do write some of their own laws. Due to the importance the Japanese place on maintaining social harmony, it is customary in Japan for disputes to be resolved without seeking legal recourse. Even though many Japanese contracts have arbitration clauses, the Japanese rarely utilize them. Arbitration in Japan can be a difficult and expensive undertaking and can seriously damage your business relationship.
Litigation has even more adverse ramifications.
Therefore, thoroughly explore all other options before resorting to either arbitration or litigation.