Arbitration is sometimes referred to as ADR, which stands for alternative dispute resolution. Simply put, it is a legal procedure in which an unbiased third-party attempts to settle a dispute outside of court. In this two minute video, Attorney Jason A. McGrath of the McGrath & Spielberger law firm discusses the logistics of an arbitration proceeding.
Arbitration Provisions: Law & Venue
1. Where is the arbitration to take place?
2. What state’s laws apply?
Make sure that the arbitration clause in your contract provides that the arbitration will take place in a specified geographical area (city, county, even state). You’ll also want to have the arbitration clause specifically provide that the laws of a certain state will be applied.
Be careful to protect your interests when drafting the arbitration provisions in your contracts.