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Arbitration Laws

What is an Arbitration Agreement?

An arbitration agreement is an arbitration clause used in a contract to require the parties involved to resolve disputes through a specific process. This type of process binds all parties to specify a resolution outside of the court judicial system. Read below to find more answers from the Experts relating to an Arbitration Agreement.

If someone was an hourly employee can they be made to sign an Arbitration Agreement?

The employer has the right to set the terms of employment and can require the employee to sign an arbitration agreement. However, if the employee refuses to do so, the employer can terminate for that refusal. If the employee refuses because of a term that would be considered unconscionable, it is possible that the employee may be able to make an argument under the principle announced in “Poly-America” that they (employee) was wrongfully terminated, but in order to win, the employee would have to make new law in that specific regard. Furthermore, if the arbitration agreement involved does not contain any provision which might be considered unconscionable, then there really are no legal bases upon which to sue if they terminate for refusing to sign the agreement.

What can someone do if a company fails to arbitrate per the contract guidelines?

Generally, where a party fails to arbitrate as required in a contract the other party may file a civil suit. A judge may then attempt to compel the parties to arbitration as opposed to allowing the matter to proceed in court. Only where arbitration is not absolutely possible will a civil suit generally be allowed to proceed. It is likely that a party may seek to either force arbitration or seek a dismissal if a civil suit is filed where there is an arbitration agreement. A potential defense would be showing the failure of that party to comply with the requirement to arbitrate.

If someone inherited a business, does that mean they need to abide by the arbitration agreements that were in place already?

If someone inherited the business, they also inherited any agreements the business entered into prior to the new ownership. Even if the new owner changed from a DBA to an LLC, they would still be obligated to honor agreements previously entered into. In order not to be bound, the new owner would have to prove that the agreement has expired or that it is not binding in regard to the issue at hand.

How many times must a business owner take their business partner to arbitration before it can be taken to small claims court?

In most situations there is generally no need to go through filing for arbitration with another arbitrator. However, a suing business partner that has the case can force the other business partner to arbitrate, if the agreement is for mandatory arbitration, or if preferred can just sue for the damages. The partner would then have to raise the issue of arbitration and the suing partner can provide the evidence that the other partner refused.

When entering a contract many times arbitration clauses or arbitration agreements need to be in place, however knowing the arbitration laws and the arbitration process can become quite taxing on an individual. Often, the not knowing how to incorporate an arbitration clause can push people to ask questions to the Experts for answers.

Ask a Business Lawyer

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Law Pro, Attorney
Category: General
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Experience:  20 years experience in business law - sole proprietor, partnership, and corporations
11688690
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How JustAnswer Works:

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Business Lawyers are online & ready to help you now

Law Pro
Attorney
Satisfied Customers: 1767
20 years experience in business law - sole proprietor, partnership, and corporations
Dimitry K., Esq.
Attorney
Satisfied Customers: 1495
Run my own successful business/contract law practice.
MShore Law
Attorney
Satisfied Customers: 1233
Drafted Negotiated and/or Reviewed Thousands of Commercial Agreements

Recent Arbitration Questions

  • There were a few times in which I was doing personal

    There were a few times in which I was doing personal shopping and realized that I had only my business card on me. I purchased about $220 worth of merchandise, but I noted the purchases on the statements and reimbursed the company. Is this considered 'comingling'
    of funds that jeopardizes me from the protection of the 'corporate veil'? Under what circumstances would something be considered 'comingling' that takes away protection of the corporate veil?
  • For Lucy, my son lives in NV having NV driver license. If

    For Lucy, my son lives in NV having NV driver license. If he goes to CA and borrow his Dad's CA-registered&Insured car & he caused accident in NV, then which laws will apply to this accident case? CA or NV?
    Since the car's owner(his Dad), registration, & insurance are in CA, then does CA laws will apply eventhough the case will be handled in NV court house due to the other party sue in NV court?
  • For Lucy, I've just read the print in Nev. Rev. Stat., Section

    For Lucy, I’ve just read the print in Nev. Rev. Stat., Section 41.470 about minor driving my car that you answered in my previous question. Please help me to understand it better by answer the below questions:
    Q1: I’m liable for a minor under-18 child, who drove my car and caused accident, is this correct? If he is 19 then I’m off the hook, is that right? (see Nev. Rev. Stat., Section 41.470(1))
    Q2: I will be liable to pay up to ONLY 10K if my minor son used my car & caused accident at his fault. Is this correct? (see Nev. Rev. Stat., Section 41.470(2)) I’m a bit confused in this 10K limitation of liability. Please help to clarify this issue.
    Q3: are CA laws the same as NV laws in questions 1&2?
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