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Should Arbitration Clauses Be in Your Contracts?

By Adam Raviv
July 27, 2013

For decades, companies have included arbitration clauses in their agreements with customers, employees, and other businesses. If your company is among them, be mindful that there are some good reasons to arbitrate your disputes ' along with some less compelling ones.

Perhaps the biggest popular allure of arbitration is its cost-savings. But do not be overly optimistic about how much money you will save by arbitrating a dispute rather than going to court. Many practitioners and companies have found arbitration to be an expensive endeavor indeed. The alleged savings from procedural informality and limited discovery can prove overblown, and are offset by such added costs as fees for the arbitrators and arbitral institutions.

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