Pre Dispute Arbitration Agreement for the United States

Pre Dispute Arbitration Agreement Template for United States

A Pre-Dispute Arbitration Agreement is a legally binding contract under United States federal and state law that establishes arbitration as the method for resolving future disputes between parties. The agreement outlines the scope of disputes covered, arbitration procedures, cost allocation, and the rights and obligations of all parties involved. It is governed primarily by the Federal Arbitration Act and relevant state laws, with consideration for industry-specific regulations and recent legislative developments.

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What is a Pre Dispute Arbitration Agreement?

Pre-Dispute Arbitration Agreements are essential risk management tools used to establish clear dispute resolution procedures before any conflicts arise. These agreements, governed by U.S. federal and state laws, specify that parties will resolve future disputes through arbitration rather than court litigation. The agreement typically details the scope of covered disputes, arbitration procedures, cost arrangements, and compliance with applicable laws. Pre-Dispute Arbitration Agreements are particularly valuable in commercial relationships, employment contexts, and consumer contracts where efficient dispute resolution is crucial.

What sections should be included in a Pre Dispute Arbitration Agreement?

1. Parties: Identifies and defines the parties entering into the arbitration agreement

2. Background: Explains the context and purpose of the arbitration agreement

3. Definitions: Defines key terms used throughout the agreement including 'Arbitration', 'Dispute', 'Award'

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

5. Scope of Arbitration: Defines what disputes are covered by the agreement and any exclusions

6. Arbitration Procedures: Outlines the process for initiating and conducting arbitration, including selection of arbitrators

7. Costs and Fees: Specifies how arbitration costs will be allocated between parties

8. Governing Law: Specifies the law governing the agreement and arbitration proceedings

What sections are optional to include in a Pre Dispute Arbitration Agreement?

1. Class Action Waiver: Waiver of right to participate in class actions, typically used in consumer or employment agreements

2. Confidentiality: Provisions regarding confidentiality of arbitration proceedings and any disclosed information

3. Discovery Procedures: Detailed rules for information exchange during arbitration proceedings

4. Emergency Relief: Provisions for seeking emergency court intervention when immediate injunctive relief is needed

5. Severability: Provision ensuring that if any part of the agreement is found invalid, the rest remains enforceable

What schedules should be included in a Pre Dispute Arbitration Agreement?

1. Schedule A - Arbitration Rules: Detailed rules of chosen arbitration organization (e.g., AAA, JAMS)

2. Schedule B - Fee Schedule: Detailed breakdown of arbitration costs and fee allocation

3. Schedule C - Notice Forms: Template forms for initiating arbitration proceedings

4. Schedule D - Excluded Claims: Detailed list of any claims specifically excluded from 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): The primary federal law governing arbitration agreements in the United States, which establishes the enforceability of arbitration agreements in commercial transactions

2022 FAA Amendment: The 'Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act' which limits the enforceability of pre-dispute arbitration agreements in sexual harassment and assault cases

State Arbitration Statutes: State-specific laws that govern arbitration agreements and may impose additional requirements or restrictions beyond federal law

State Contract Law: General principles of contract formation and enforcement that apply to arbitration agreements under state law

Industry-Specific Regulations: Specialized rules and requirements for arbitration agreements in particular sectors such as financial services, healthcare, and employment

Supreme Court Precedents: Key decisions from the U.S. Supreme Court establishing principles for arbitration agreement enforcement and interpretation

Circuit Court Decisions: Relevant federal appellate court decisions that may affect arbitration agreement requirements in specific jurisdictions

Unconscionability Doctrine: Legal principle examining both procedural and substantive fairness of arbitration agreements to ensure they are not unfairly one-sided

Clear Disclosure Requirement: Legal requirement that arbitration terms must be clearly and conspicuously disclosed to all parties

Mutual Assent: Requirement that all parties must knowingly agree to arbitration terms for the agreement to be valid

Consideration Requirement: Legal requirement that there must be some exchange of value between parties for the arbitration agreement to be binding

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

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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