Franchising: Arbitration law applies to compel non-binding arbitration
Monday, 1 February 1999
Featured In: February / March 1999 (Vol. 2 Iss. 1)
In drafting arbitration clauses, franchisers and others should be aware that (1) non-binding arbitration clauses are governed by the Federal Arbitration Act to the same extent as binding arbitration clauses, and (2) unless the arbitration provision explicitly states that the arbitration process shall be governed by the procedural laws of a certain state, federal courts will follow the Federal Arbitration Act rather than state laws governing arbitration procedures.
Philip F Zeidman
Rudnick, Wolfe, Epstien & Zeidman
Washington DC
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