Many people first learn about arbitration when a company tells them a dispute must go to an arbitrator. That raises a fair question: can you really be forced? In most cases, if you signed a valid agreement to arbitrate, the answer is yes. There are limits, though.

The general rule

Under the Federal Arbitration Act, courts generally enforce valid written arbitration agreements. If your contract contains an arbitration clause and the dispute falls within it, a court can order the parties to arbitrate and pause a lawsuit.

When arbitration may not be required

Reading the clause

Check what it covers, who administers the case, and whether the decision is binding. A clearly written clause is more likely to be enforced. See the examples in our sample arbitration clauses.

If the other side will not arbitrate

The opposite problem also happens. When a party refuses to take part, read what happens when one party refuses to participate in arbitration.

Is arbitration fair?

Arbitration is a neutral process with a written decision, and it is often faster than court. online arbitration is handled entirely online. This article is general information and not legal advice, so speak with a licensed attorney about your specific agreement.

Leave a Reply

Your email address will not be published. Required fields are marked *

Violet - Product design
Join our email list and file one claim free!*

*terms apply