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

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

Validity of Arbitration Agreement [2.2]

A written agreement to submit any existing controversy to arbitration or a provision in a written contract to submit to arbitration any controversy thereafter arising between the parties is valid, enforceable and irrevocable, save upon such grounds as exist at law or in equity for the revocation of any contract.

This means that if the customer agrees to the arbitration clause in the contract, it is legally binding and enforceable.

State and Political Subdivisions; Use of Arbitration [2.1]

A. In the discretion of any state agency, board or commission or any political subdivision of this state, the services of the American arbitration association, or any other similar body, may be used as provided by this article. Any agreement to make use of arbitration shall be made either at the time of entering into a contract or by written mutual agreement at a subsequent time prior to the filing of any civil action.

This means that the agreement to use arbitration must be made either at the time of entering into a contract or by written mutual agreement at a subsequent time prior to the filing of any civil action.

Proceedings to Compel or Stay Arbitration [2.3]

A. On application of a party showing an agreement described in section 12-1501, and the opposing party’s refusal to arbitrate, the court shall order the parties to proceed with arbitration, but if the opposing party denies the existence of the agreement to arbitrate, the court shall proceed summarily to the determination of the issue so raised and shall order arbitration if found for the moving party. Otherwise, the application shall be denied.

This means that if the customer refuses to arbitrate, the court can order the parties to proceed with arbitration.

Contract Clauses [1.1][3.2]

A. The director may permit or require the inclusion of clauses providing for appropriate remedies, adjustments in prices, time of performance or other contract provisions. B. The director may modify clauses for inclusion in any particular state contract, provided that any variations are supported by a written determination that states the circumstances justifying the variation and provided that notice of any material variation is stated in the solicitation. C. All contract clauses shall be consistent with the provisions of this chapter and the regulations issued pursuant to this chapter. The agency chief procurement officer shall include in solicitations and contracts all contract clauses necessary to ensure the state’s interests are addressed.

This means that the contract clauses must be consistent with the provisions of the chapter and regulations issued pursuant to this chapter. The agency chief procurement officer shall include in solicitations and contracts all contract clauses necessary to ensure the state’s interests are addressed.

Conclusion

Based on the documents provided, it is possible to require customers to sign contracts with binding arbitration clauses in Arizona. The agreement to use arbitration must be made either at the time of entering into a contract or by written mutual agreement at a subsequent time prior to the filing of any civil action. The contract clauses must be consistent with the provisions of the chapter and regulations issued pursuant to this chapter. If the customer refuses to arbitrate, the court can order the parties to proceed with arbitration.

Source(s):
Jurisdiction

Arizona