Arbitration Agreement Clause for the United States

Arbitration Agreement Clause Template for United States

An arbitration agreement clause is a contractual provision that requires parties to resolve their disputes through arbitration rather than litigation in courts. Under United States law, these clauses are governed primarily by the Federal Arbitration Act and applicable state laws. The clause specifies the scope of disputes subject to arbitration, the process for selecting arbitrators, and the procedures to be followed in the arbitration process.

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What is a Arbitration Agreement Clause?

The Arbitration Agreement Clause serves as a critical component in modern contractual relationships, providing a more efficient and often less costly alternative to traditional litigation. This document is essential when parties wish to establish a clear framework for dispute resolution outside the court system. Under U.S. law, particularly the Federal Arbitration Act, such agreements are strongly enforced and have become increasingly common in various contexts, from employment contracts to consumer agreements. The clause typically includes specific provisions about the scope of arbitrable disputes, selection of arbitrators, and procedural requirements.

What sections should be included in a Arbitration Agreement Clause?

1. Parties: Identification of all parties entering into the arbitration agreement

2. Background: Context and purpose of the arbitration agreement

3. Definitions: Key terms used throughout the agreement

4. Agreement to Arbitrate: Core provision establishing mutual agreement to arbitrate disputes

5. Scope of Arbitration: Specific matters subject to arbitration

6. Arbitration Procedures: Process for initiating and conducting arbitration

What sections are optional to include in a Arbitration Agreement Clause?

1. Class Action Waiver: Optional provision waiving right to participate in class actions, typically used in consumer or employment contracts

2. Cost Allocation: Optional section specifying how arbitration costs will be shared between parties

3. Confidentiality: Optional provisions for maintaining confidentiality of arbitration proceedings

4. Emergency Relief: Optional provisions allowing parties to seek emergency court intervention when needed

What schedules should be included in a Arbitration Agreement Clause?

1. Arbitrator Selection Procedures: Detailed process and requirements for selecting arbitrators

2. Fee Schedule: Breakdown of arbitration fees and cost allocation between parties

3. Arbitration Rules: Specific rules governing the arbitration process, often incorporating institutional rules

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

United States

Publisher

Genie AI

Cost

Free to use
Industries

Federal Arbitration Act (FAA): The primary federal law governing arbitration agreements in the United States, which establishes the validity, enforcement, and interpretation of arbitration agreements

Federal Rules of Civil Procedure: Federal court rules that may impact arbitration proceedings and their relationship to court proceedings

State Arbitration Statutes: Individual state laws governing arbitration that may supplement or modify federal requirements within state jurisdiction

State Contract Laws: General contract formation and enforcement principles that apply to arbitration agreements as contracts

AT&T Mobility LLC v. Concepcion (2011): Supreme Court decision upholding the enforceability of class action waivers in arbitration agreements

Epic Systems Corp. v. Lewis (2018): Supreme Court decision confirming that employers can enforce individual arbitration agreements in employment contracts

Lamps Plus, Inc. v. Varela (2019): Supreme Court ruling that ambiguous arbitration agreements cannot provide the basis for class arbitration

Unconscionability Doctrine: Legal principle that may void arbitration agreements that are unreasonably favorable to one party or unfairly imposed

Employment Arbitration Rules: Specific regulations and requirements governing arbitration in employment contexts

Consumer Protection Laws: Federal and state laws that may limit or affect the enforceability of arbitration agreements in consumer contracts

Securities Regulations: Special rules governing arbitration in securities-related disputes

Enforceability Requirements: Specific elements required for an arbitration agreement to be legally binding, including clear and unambiguous language

Scope Provisions: Clauses defining which disputes are subject to arbitration and which may be excluded

Cost Allocation: Provisions specifying how arbitration costs and fees will be distributed between parties

Arbitrator Selection: Rules and procedures for choosing arbitrators and ensuring their neutrality

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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