The Arbitration And Mediation Clause is essential in modern U.S. business contracts to establish clear dispute resolution procedures. It's particularly relevant given the increasing preference for alternative dispute resolution over traditional litigation. This clause, governed by federal and state arbitration laws, typically specifies mediation requirements, arbitrator selection processes, applicable rules, and procedural details. It's commonly used in commercial contracts, employment agreements, and consumer contracts to provide a more efficient and cost-effective means of resolving disputes.
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1. Agreement to Arbitrate: Defines the scope of disputes subject to arbitration and the binding nature of the arbitration process
2. Mediation Requirement: Specifies whether and when mediation must be attempted before proceeding to arbitration, including timeframes and procedures
3. Arbitrator Selection: Details the process for selecting arbitrator(s), including number of arbitrators and selection methodology
4. Arbitration Rules: Specifies which arbitration rules will govern the proceedings (e.g., AAA, JAMS) and any modifications
5. Venue and Jurisdiction: Establishes the location where arbitration will be conducted and applicable law
1. Class Action Waiver: Provision waiving the right to participate in class actions, typically used in consumer or employment contracts
2. Cost Allocation: Specifies how arbitration costs and fees will be shared between the parties
3. Discovery Limitations: Sets specific limits on the discovery process during arbitration proceedings
4. International Provisions: Additional provisions specifically addressing international dispute resolution requirements
1. Arbitration Rules Reference: Complete text or reference to the chosen arbitration rules
2. Mediator/Arbitrator Qualifications: Detailed requirements and qualifications for mediator or arbitrator selection
3. Fee Schedule: Comprehensive breakdown of applicable fees and costs for both mediation and arbitration
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