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

Based on the documents provided, it is possible to require customers to sign contracts with binding arbitration clauses in Oklahoma. However, there are certain requirements that must be met.

Requirements for Contracts with Binding Arbitration Clauses

According to [1.1]" >71 O.S. § 809, any business opportunity contract or agreement must be in writing and a copy of the contract or agreement must be given to the purchaser at the time the purchaser signs the contract or agreement. Additionally, the contract or agreement must set forth in at least ten-point type the terms and conditions of any and all payments due to the seller, the seller’s principal business address and the name and address of the seller’s agent in this state authorized to receive service of process, the business form of the seller, whether corporate, partnership or otherwise, the delivery date or, when the contract provides for a periodic delivery of items to the purchaser, the approximate delivery date of the product, equipment or supplies the seller is to deliver to the purchaser to enable the purchaser to start his or her business, and whether the product, equipment or supplies are to be delivered to the purchaser’s home or business address or are to be placed or caused to be placed by the seller at locations owned or managed by persons other than the purchaser.

Arbitration Agreements

The Uniform Arbitration Act governs an agreement to arbitrate made on or after January 1, 2006, according to [3.1]" >12 O.S. § 1854. The Act also governs an agreement to arbitrate made before January 1, 2006, if all the parties to the agreement or to the arbitration proceeding so agree in a record. Beginning January 1, 2006, the Uniform Arbitration Act governs an agreement to arbitrate whenever made.

Enforceability of Arbitration Agreements

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, according to [3.2]" >12 O.S. § 1857. If necessary, a court shall decide whether an agreement to arbitrate exists or a controversy is subject to an agreement to arbitrate. An arbitrator shall decide whether a condition precedent to arbitrability has been fulfilled and whether a contract containing a valid agreement to arbitrate is enforceable. If a party to a judicial proceeding challenges the existence of, or claims that a controversy is not subject to, an agreement to arbitrate, the arbitration proceeding may continue pending final resolution of the issue by the court, unless the court otherwise orders.

Exclusive Jurisdiction

A court of this state having jurisdiction over the controversy and the parties may enforce an agreement to arbitrate, according to [3.3]" >12 O.S. § 1877. An agreement to arbitrate providing for arbitration in this state confers exclusive jurisdiction on the court to enter judgment on an award under the Uniform Arbitration Act.

Electronic Signatures

The provisions of the Uniform 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 shall conform to the requirements of Section 102 of the Electronic Signatures in Global and National Commerce Act, according to [3.4]" >12 O.S. § 1881.

Waivers

Except as otherwise provided in subsections B, C and D of [3.5]" >12 O.S. § 1855 and subject to the public policy of this state as expressed in the Uniform Arbitration Act, including Section 1880 of this title, and in the laws of this state outside of this act, a party to an agreement to arbitrate or to an arbitration proceeding may waive, or the parties may vary the effect of, the requirements of the Uniform Arbitration Act to the extent permitted by law. Before a controversy arises that is subject to an agreement to arbitrate, a party to the agreement may not waive or agree to vary the effect of certain requirements, including the right under Section 1867 of this title of a party to an agreement to arbitrate to be represented by a lawyer at any proceeding or hearing under the Uniform Arbitration Act, but an employer and a labor organization may waive the right to representation by a lawyer in a labor arbitration.

Contracts to Which Act Does Not Apply

The Uniform Arbitration Act shall not apply to collective bargaining agreements and contracts which reference insurance, except for those contracts between insurance companies, according to [3.5]" >12 O.S. § 1855. Additionally, [4.1]" >15 O.S. § 821 states that the act shall not apply to any contract relating to a single-, two-, three-, or four-family dwelling.

Therefore, it is possible to require customers to sign contracts with binding arbitration clauses in Oklahoma, but the contracts must meet the requirements set forth in the relevant statutes.

Source(s):
Jurisdiction

Oklahoma