Whether an arbitration clause is enforceable is a critical question for businesses and owners. Arbitration clauses are a valuable tool, but they must meet state law’s requirements to be enforceable.

New Jersey Finally Gets a Roadmap to Creating a Valid …

In recent years, the New Jersey Supreme Court has ruled in favor of arbitration agreements. They noted that the state has a policy favoring arbitration agreements, and that the FAA provides a strong basis for enforcing arbitration agreements.

In addition to the FAA, New Jersey has the New Jersey Arbitration Act (NJAA). The NJAA provides default procedures for selecting an arbitrator. The parties can either choose their own arbitrator, or request that a court appoint one. Find out : https://www.scura.com/blog/validity-of-arbitration-clauses-in-new-jersey

The NJAA also provides a default provision that permits the court to decide an issue that was left open by the parties. These default provisions are used when parties have failed to meet the requirements of an arbitration agreement.

New Jersey courts must apply state contract law to determine the validity of an arbitration agreement. They begin by determining whether an arbitration clause is mutual, enforceable, and mutually applicable.

A valid arbitration clause should clearly distinguish between arbitration and court proceedings. It must also be written clearly and include information about the arbitration process. If the arbitration clause does not explain the arbitration process, it is not enforceable.

New Jersey courts also require that arbitration agreements be written in a clear, unambiguous way. They should also clearly state the purpose of the contract. The agreement should also state the procedure for arbitration, and indicate whether the employee is waiving the right to go to a jury trial.