A C&D in Germany is the usual way to resolve disputes, in which case you get a letter + bill + C&D form to sign, you can either comply and sign the C&D and pay the fine or ignore it or just sign the C&D but not pay the bill, in which case the other party can drop it, send more letters or take it to court.

If you take it to court and the court finds the complaint invalid then they can (and usually do) force the party that sent the C&D to pay your expenses and damages (ie, lost business due to you having to turn up to court) and usually a restraining order with hefty fines on it.

Atleast in germany it is expected that disputes are resolved via C&D and letter correspondence, court is a last resort.

To my knowledge, the court system in other countries varies but is not that different...