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

Requirements for Binding Arbitration Clauses in Hawaii

Yes, you can require customers to sign contracts with binding arbitration clauses in Hawaii. However, there are specific requirements that must be met.

According to Hawaii law, parties can enter into voluntary binding arbitration agreements for condominium-related disputes [1.1]. However, any parties who wish to enter into voluntary binding arbitration must first attempt evaluative mediation [1.1].

For contracts with automatic renewal clauses or continuous service clauses, Hawaii law requires that any person who sells or offers to sell products or services to a consumer pursuant to a consumer contract that has a specified term of more than one month and an automatic renewal clause under which the contract will automatically renew for a specified term of more than one month unless the consumer cancels the contract, shall disclose the automatic renewal clause and the procedure by which the consumer can cancel automatic renewal of the consumer contract clearly and conspicuously in the consumer contract [2.1].

Additionally, any person who sells or offers to sell products or services to a consumer pursuant to a consumer contract that contains a continuous service clause shall clearly and conspicuously disclose the continuous service clause and the procedure by which the consumer can cancel the contract [2.1].

Furthermore, Hawaii has adopted the Hawaii International Arbitration, Mediation, and Conciliation Act, which encourages the use of arbitration, mediation, and conciliation to resolve disputes arising out of international relationships [5.1][5.2].

Conclusion

In conclusion, you can require customers to sign contracts with binding arbitration clauses in Hawaii. However, there are specific requirements that must be met, such as attempting evaluative mediation before entering into voluntary binding arbitration agreements [1.1], and clearly and conspicuously disclosing automatic renewal and continuous service clauses and the procedures for canceling them [2.1]. Additionally, Hawaii encourages the use of arbitration, mediation, and conciliation to resolve disputes arising out of international relationships [5.1][5.2].

Source(s):
Jurisdiction

Hawaii