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Mutual Arbitration for the United States

Mutual Arbitration Template for United States

A Mutual Arbitration Agreement is a legally binding contract under U.S. law that establishes an alternative dispute resolution process between parties. This agreement requires both parties to resolve their disputes through arbitration rather than litigation in court. Governed by the Federal Arbitration Act and applicable state laws, it details the arbitration process, cost allocation, arbitrator selection, and scope of covered disputes. The agreement ensures equal binding obligations on all parties while maintaining compliance with federal and state arbitration requirements.

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Mutual Arbitration

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What is a Mutual Arbitration?

The Mutual Arbitration Agreement serves as a critical risk management tool in U.S. business relationships, providing a more efficient and cost-effective alternative to traditional litigation. This document is typically implemented when parties wish to establish clear dispute resolution procedures at the outset of their relationship. The agreement covers essential elements such as the scope of arbitrable disputes, selection of arbitrators, cost-sharing arrangements, and procedural rules, all while ensuring compliance with federal and state arbitration laws. The mutual nature of the agreement ensures that all parties are equally bound by its terms, making it particularly valuable for employment relationships, business partnerships, and service agreements.

What sections should be included in a Mutual Arbitration?

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 and which claims are subject to arbitration

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

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

7. Cost Allocation: How arbitration costs, fees, and expenses will be shared between parties

8. Governing Law: Applicable law governing the agreement and jurisdiction

What sections are optional to include in a Mutual Arbitration?

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

2. Confidentiality: Requirements for maintaining confidentiality of arbitration proceedings and outcomes

3. Discovery Procedures: Rules for information exchange and evidence gathering during arbitration

4. Severability: Clause ensuring that if any provision is found invalid, the remainder of the agreement remains enforceable

What schedules should be included in a Mutual Arbitration?

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

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

3. Schedule C - Arbitrator Qualification Requirements: Detailed requirements and qualifications for selecting arbitrators

Authors

Alex Denne

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

Jurisdiction

United States

Publisher

Ƶ

Cost

Free to use
Clauses


























Industries

Federal Arbitration Act (FAA): The primary federal law governing arbitration agreements in the United States. Sets forth the basic principles for enforcement of arbitration agreements.

Civil Rights Act of 1964: Must be considered to ensure the arbitration agreement doesn't infringe on protected civil rights and discrimination protections.

Americans with Disabilities Act (ADA): Federal law that must be considered to ensure arbitration agreement doesn't limit rights of individuals with disabilities.

Age Discrimination in Employment Act (ADEA): Federal law protecting against age discrimination that must be considered in arbitration agreement terms.

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

State Contract Laws: General contract formation and enforcement principles that vary by state and affect the validity of arbitration agreements.

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 provisions in employment agreements.

Lamps Plus, Inc. v. Varela (2019): Supreme Court decision requiring clear and explicit agreement for class arbitration.

Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act of 2021: Recent federal law prohibiting enforcement of mandatory arbitration clauses for sexual assault and harassment claims.

Mutual Binding Requirement: Legal requirement that arbitration agreement must be mutually binding on all parties to be enforceable.

Unconscionability Doctrine: Legal principle requiring arbitration agreements to be both procedurally and substantively conscionable.

Administrative Agency Rights: Requirement that arbitration agreements preserve parties' rights to file claims with administrative agencies.

Arbitrator Selection Process: Legal requirement to specify clear and fair process for selecting arbitrators.

Cost Allocation Requirements: Legal considerations regarding fair allocation of arbitration costs between parties.

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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