(1) If the defendant admits the claim, the defendant may settle it by:
(a) Paying to the court the amount of the claim plus the amount of the small claims fee and service expenses paid by the plaintiff. The court shall pay to the plaintiff the amounts paid by the defendant.
(b) If the claim is for recovery of specific personal property, delivering the property to the plaintiff and paying to the plaintiff the amount of the small claims fee and service expenses paid by the plaintiff.
(2) If the defendant denies the claim, the defendant:
(a) May demand a hearing in the small claims department in a written request to the court in the form prescribed by the court, accompanied by payment of the defendant’s fee prescribed; and
(b) When demanding a hearing, may assert a counterclaim in the form provided by the court; or
(c) If the amount or value claimed exceeds $750, may demand a jury trial in a written request to the court in the form prescribed by the court, accompanied by payment of the appearance fee prescribed by ORS 51.310 (1)(b) together with the trial fee prescribed by ORS 52.410. The request shall designate a mailing address to which a summons and copy of the complaint may be served by mail. Thereafter, the plaintiff’s claim will not be limited to the amount stated in the claim, though it must involve the same controversy. [1989 c.583 §6; 1995 c.227 §3]