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

To require customers to sign contracts with binding arbitration clauses in New Jersey, the following requirements must be met:

Requirements for binding arbitration clauses in New Jersey

  1. The arbitration agreement must be in writing and signed by the parties [NJST 2A:24-1].
  2. The parties must consent to arbitration [NJST 2A:23E-5].
  3. The arbitration agreement must provide for arbitration within the State of New Jersey [NJST 2A:23E-5].
  4. The arbitration agreement must not be unconscionable or against public policy [NJST 2A:24-1].

Additional information

  • The rules and regulations contained in NJAC 12:105-1.1 are deemed a part of an arbitration agreement between parties whenever in their collective bargaining agreements or submissions they have provided for arbitration through the New Jersey State Board of Mediation or under its rules [1.1].
  • NJST 2A:23E-2 declares that the State of New Jersey encourages the use of arbitration, mediation, and conciliation to reduce disputes arising out of international business, trade, commercial, and other relationships [3.2].
  • NJAC 12:105-2.3 allows arbitration to be initiated by the board, whether or not a collective bargaining agreement exists, upon filing a copy of a written agreement by the parties to arbitrate under the rules and regulations of the board [1.2].
  • NJAC 12:105-2.2 allows for a request for arbitration to be made by either party under a general arbitration clause in a collective bargaining agreement where the parties have agreed by stipulation or otherwise to arbitrate under the administration and rules of the Board [1.3].

Therefore, as long as the requirements listed above are met, customers can be required to sign contracts with binding arbitration clauses in New Jersey.

Source(s):
Jurisdiction

New Jersey