Mutual Arbitration Agreement for the United States

Mutual Arbitration Agreement Template for United States

A Mutual Arbitration Agreement is a legally binding contract under U.S. law where two or more parties agree to resolve their disputes through arbitration rather than litigation in courts. This agreement, governed by the Federal Arbitration Act and relevant state laws, establishes the framework for how future disputes will be handled, including the selection of arbitrators, cost allocation, and procedural rules. It typically includes provisions for both parties to waive their right to pursue claims in court, instead committing to the arbitration process.

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What is a Mutual Arbitration Agreement?

The Mutual Arbitration Agreement serves as a crucial risk management tool in U.S. business relationships. This document is typically implemented when parties wish to establish a clear, efficient, and potentially more cost-effective method of resolving disputes outside the traditional court system. The agreement defines the scope of arbitrable matters, procedures for selecting arbitrators, cost arrangements, and other essential terms that will govern future dispute resolution. It's particularly valuable for employment relationships, business partnerships, and commercial transactions where maintaining confidentiality and expeditious dispute resolution are priorities.

What sections should be included in a Mutual Arbitration Agreement?

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. Scope of Arbitration: What disputes are covered by the agreement, including reference to relevant laws (FAA, state laws)

5. Arbitration Procedures: Process for initiating and conducting arbitration, including timelines and requirements

6. Selection of Arbitrator: Process for choosing arbitrator(s) and required qualifications

7. Cost Allocation: How arbitration costs will be shared between parties

8. Governing Law: Specification of applicable law governing the agreement and jurisdiction

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

1. Class Action Waiver: Waiver of right to participate in class or collective actions

2. Confidentiality: Provisions regarding confidentiality of arbitration proceedings and outcomes

3. Discovery Limitations: Specific limits on discovery process and information exchange

4. Severability: Provisions for maintaining validity of remainder of agreement if any portion is found unenforceable

What schedules should be included in a Mutual Arbitration Agreement?

1. Schedule A - Arbitration Rules: Detailed procedures and rules for conducting arbitration proceedings

2. Schedule B - Fee Schedule: Breakdown of arbitration costs, fees, and payment responsibilities

3. Schedule C - Excluded Claims: Comprehensive list of specific disputes not subject to arbitration

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): Primary federal law (9 U.S.C. ยงยง 1-16) that establishes the validity and enforceability of arbitration agreements, sets basic requirements for arbitration procedures, and provides framework for judicial enforcement of arbitration awards

Title VII of the Civil Rights Act: Federal employment law that must be considered in arbitration agreements to ensure the agreement doesn't infringe on protected civil rights

Americans with Disabilities Act (ADA): Federal law protecting rights of individuals with disabilities that must be accounted for in arbitration agreements

Age Discrimination in Employment Act (ADEA): Federal law protecting against age discrimination that must be considered when drafting arbitration agreements

Fair Labor Standards Act (FLSA): Federal law governing wages and hours that must be considered in employment-related arbitration agreements

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

Epic Systems Corp. v. Lewis (2018): Supreme Court decision upholding the enforceability of employment arbitration agreements and class action waivers

Circuit City Stores v. Adams (2001): Supreme Court decision clarifying the scope of FAA application in employment contracts

State Arbitration Laws: State-specific laws that may impose additional requirements or restrictions on arbitration agreements beyond federal law

State Contract Formation Requirements: State-specific requirements for valid contract formation that must be met for the arbitration agreement to be enforceable

Unconscionability Doctrine: Legal doctrine considering both procedural and substantive fairness of arbitration agreements, which varies by state jurisdiction

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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