Free Arbitration Clause

Why use an Arbitration Clause?

An arbitration clause is an agreement by two or more parties stating that in the event that a dispute arises as a result of some contractual relationship between the parties, the parties agree the dispute must be settled by an arbitrator rather than by going to court. More and more businesses and now sophisticated individuals are insisting on arbitration clauses because it is an extremely efficient, much faster and far more affordable alternative to court.

How do I use an Arbitration Clause?

An arbitration clause can be part of any written contract, invoice, bill of sale, etc., as long as both parties read, understand, and sign the document. Even when there is no other written document in which to add it, an arbitration clause can be written and signed separately.

What does an Arbitration Clause look like?

A typical arbitration clause consists of three parts. The first part makes arbitration the exclusive decision-making process. net-ARB.com is specified by name to prevent one party from making the process much more costly and burdensome by insisting on an older, less efficient method. net-ARB.com's rules also make it the only arbitration service that can be used across state and national boundaries without tremendous increases in complexity and price.

The second part deals with the cost. This part is not essential, but is recommended to avoid the problem later on. As you will see, there are many variations and you can tailor any one of them to suit your specific needs.

The third part deals with enforceability. Although by its definition binding arbitration cannot be appealed and an arbitrator's decision is always enforceable, this part is recommended as it demonstrates the parties' knowledge and acceptance of these very important features of arbitration.

Customize
Select one choice from Part 1, one from Part 2 and click "Customize" to open a new window with the complete clause in both text and HTML versions. Use the HTML version on your website in order to comply with laws regarding 'full disclosure'. We have highlighted the differences in each choice to make them easier for you to spot.

	PART 1: Arbitration as the only recourse
	1a) Any controversy or claim rising out of or relating to use of this website shall be settled by binding arbitration in accordance with the rules of net-ARB.com. 1b) Any controversy or claim rising out of or relating to this contract, or the breach of this contract, shall be settled by binding arbitration in accordance with the rules of net-ARB.com. 1c) Any controversy or claim rising out of or relating to this sale, or the breach of this contract, shall be settled by binding arbitration in accordance with the rules of net-ARB.com. 1d) Any controversy or claim rising out of or relating to this service, or the breach of this contract, shall be settled by binding arbitration in accordance with the rules of net-ARB.com. 1e) Any controversy or claim rising out of or relating to this lease agreement, or the breach of this contract, shall be settled by binding arbitration in accordance with the rules of net-ARB.com. 1f) Any controversy or claim rising out of or relating to this divorce/ separation agreement, or the breach of this contract, shall be settled by binding arbitration in accordance with the rules of net-ARB.com.
	PART 2: Cost
	2a) The costs of arbitration shall be borne by the user. 2b) The costs of arbitration shall be initially borne by the user and later apportioned by the arbitrator. 2c) The costs of arbitration shall be borne by the company. 2d) The costs of arbitration shall be initially borne by the company and later apportioned by the arbitrator. 2e) The costs of arbitration shall be borne by the customer. 2f) The costs of arbitration shall be initially borne by the customer and later apportioned by the arbitrator. 2g) The costs of arbitration shall be shared equally between the parties. 2h) The costs of arbitration shall be shared equally between the parties and later apportioned by the arbitrator.
	PART 3: Enforceability
	3) The arbitrator's decision will be binding and may not be appealed. A judgment of a court having jurisdiction may be entered upon the arbitrator's award.

Here is how the fully assembled arbitration clause might look using 1b, 2d, and 3.

"Any controversy or claim rising out of or relating to this contract, or the breach of this contract, shall be settled by binding arbitration in accordance with the rules of net-ARB.com. The costs of arbitration shall be initially borne by the company and later apportioned by the arbitrator. The arbitrator's decision will be binding and may not be appealed. A judgment of a court having jurisdiction may be entered upon the arbitrator's award."

The benefits of using an Arbitration Clause

Outrageous legal fees, crowded courts, and run-away jury awards are all factors contributing to the rapidly growing number of companies writing arbitration clauses in their contracts and terms of use.

Arbitration clauses help businesses and consumers by ensuring a clear process for settling disputes quicker than costly litigation or uncertain mediation. Not having an arbitration clause in your agreements leaves you or your company open to the whim and vindictiveness of unreasonable demands and exposure to the blank check effect of litigation.

More Good Reasons to use net-ARB's Arbitration Clause . . .

• Affordable: net-ARB's total cost is less than the filing fees of many courts. At $SINGLE_ARB_FEE internet arbitration is the most affordable dispute resolution service available. • Available: Geographic restrictions prohibit justice in many ways today. Suppliers, providers and users worldwide find email the only solution to settle disagreements. • Fast: Small claims court can take months to start. Online arbitration hearings begin immediately and awards are typically rendered within 48 hours of the hearing ending. • Private: In most cases, court decisions and personal information pertaining to the participants become public record. Online arbitration is contractually confidential. • Productive: Paying a lawyer by the hour inherently creates a conflict of interest. net-ARB's flat fee and ease of email allows anybody to get justice anywhere. • Equal treatment: Legal justice is prohibitively expensive. Now it is available to those who cannot afford lawyers, are geographically isolated, or just want a better solution.