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

Yes, you can require customers to sign contracts with binding arbitration clauses in Florida. However, to ensure that the agreement to arbitrate is valid, enforceable, and irrevocable, you must follow certain requirements.

Validity of Arbitration Agreements

Under FLCL 682.02(1), an agreement contained in a record to submit to arbitration any existing or subsequent controversy arising between the parties to the agreement is valid, enforceable, and irrevocable except upon a ground that exists at law or in equity for the revocation of a contract.

Matters Eligible or Ineligible for Arbitration

It is important to note that disputes involving the termination of a condominium cannot be accepted for arbitration under the mandatory non-binding arbitration rules of procedure in Florida [1.2].

Initiation of Arbitration

To initiate an arbitration proceeding, a person must give 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 [2.1].

Communication with Arbitrator

While a case is pending and within 15 days of entry of a final order, no party or other person directly or indirectly interested in an arbitration proceeding nor anyone authorized to act on behalf of a party or other interested person shall communicate verbally or in writing in the absence of all parties with an arbitrator or with the Department of Business and Professional Regulation relative to the merits of the arbitration proceeding, threaten an arbitrator, or offer an arbitrator any reward [1.4].

In summary, you can require customers to sign contracts with binding arbitration clauses in Florida, but you must ensure that the agreement to arbitrate is valid, enforceable, and irrevocable. You must also follow the proper procedures for initiating arbitration and avoid communicating with the arbitrator outside of the established channels.

Source(s):
Jurisdiction

Florida