- There must be an arbitration clause.
- Discovery is limited.
- Arbitration may not be that much less expensive than litigation.
Arbitration is an alternative means of resolving disputes between parties. Most contracts transacted by consumers today contain an arbitration clause requiring any and all disputes relating to the subject of the contract be resolved by arbitration and not by a court proceeding. Although the Federal Arbitration Act governs most arbitration contracts in the United States, arbitration is largely a creature of contract. Parties are free, for the most part, to craft their own arbitration procedures and means of administration.