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Can I require customers to sign contracts with binding arbitration clauses in Arkansas? What are the requirements?

Requirements for Binding Arbitration Clauses in Arkansas

In Arkansas, customers can be required to sign contracts with binding arbitration clauses, but the clauses must be contained in a separate document and the customer must knowingly and voluntarily agree to submit to binding arbitration by signing a waiver of their right to sue and/or their choice of forum [1.1].

If a person shows an agreement to arbitrate and alleges another person’s refusal to arbitrate pursuant to the agreement, the court shall order the parties to arbitrate unless it finds that there is no enforceable agreement to arbitrate [2.1].

A person initiates an arbitration proceeding by giving notice in a record to the other parties to the agreement to arbitrate in the agreed manner between the parties or, in the absence of agreement, by certified or registered mail, return receipt requested and obtained, or by service as authorized for the commencement of a civil action. The notice must describe the nature of the controversy and the remedy sought [2.3].

The provisions of the Arkansas Arbitration Act governing the legal effect, validity, and enforceability of electronic records or electronic signatures, and of contracts performed with the use of such records or signatures conform to the requirements of Section 102 of the Electronic Signatures in Global and National Commerce Act [2.5].

Conclusion

In summary, in Arkansas, customers can be required to sign contracts with binding arbitration clauses, but the clauses must be contained in a separate document and the customer must knowingly and voluntarily agree to submit to binding arbitration by signing a waiver of their right to sue and/or their choice of forum. If a person shows an agreement to arbitrate and alleges another person’s refusal to arbitrate pursuant to the agreement, the court shall order the parties to arbitrate unless it finds that there is no enforceable agreement to arbitrate. A person initiates an arbitration proceeding by giving notice in a record to the other parties to the agreement to arbitrate in the agreed manner between the parties or, in the absence of agreement, by certified or registered mail, return receipt requested and obtained, or by service as authorized for the commencement of a civil action. The notice must describe the nature of the controversy and the remedy sought. The provisions of the Arkansas Arbitration Act governing the legal effect, validity, and enforceability of electronic records or electronic signatures, and of contracts performed with the use of such records or signatures conform to the requirements of Section 102 of the Electronic Signatures in Global and National Commerce Act.

Source(s):
Jurisdiction

Arkansas