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

Yes, you can require customers to sign contracts with binding arbitration clauses in Delaware. The Delaware Rapid Arbitration Act allows for written agreements to submit to arbitration any controversy existing at or arising after the effective date of the agreement, which is valid, enforceable, and irrevocable [2.1]. However, there are certain requirements that must be met:

Requirements for Binding Interest Arbitration

According to [1.1], if a labor dispute cannot be resolved through negotiations and mediation, binding interest arbitration may be initiated. The Board must determine whether a good faith effort has been made by both parties to resolve the dispute and whether binding interest arbitration would be appropriate and in the public interest. The binding interest arbitrator must hold hearings to define the area of dispute, determine facts, and render a decision on unresolved contract issues. The arbitrator must make written findings of fact and a decision for the resolution of the dispute. The decision shall be limited to a determination of which of the parties’ last, best, final offers shall be accepted in its entirety. In arriving at a determination, the arbitrator shall consider various factors, including the interests and welfare of the public, comparison of wages and benefits, and financial ability of the employer. The decision of the arbitrator becomes an order of the Board within 5 business days after it has been served on the parties.

Requirements for Notice of Intention to Arbitrate

According to [3.3], a party seeking to arbitrate must serve upon another party a notice of intention to arbitrate, specifying the agreement pursuant to which arbitration is sought and the name and address of the party serving the notice. The notice must state that unless the party served applies to enjoin the arbitration within 20 days after such service, such party shall thereafter be precluded from objecting that a valid agreement was not made or has not been complied with. The notice must be served in the same manner as a summons or by registered or certified mail, return receipt requested. A complaint seeking to enjoin arbitration must be made by the party served within 20 days after service of the notice or the party shall be so precluded.

Requirements for Viatical Settlement Providers and Brokers

According to [4.2], a person may not operate as a viatical settlement provider or broker without first obtaining a license from the Commissioner of the state of residence of the viator. An application for a license must be made to the Commissioner by the applicant on a form prescribed by the Commissioner and must be accompanied by the fees specified in § 701(30) of this title. Licenses may be renewed from year to year upon payment of the annual renewal fees specified in § 701(30) of this title. The applicant shall provide information on forms required by the Commissioner. The Commissioner has the authority, at any time, to require the applicant to fully disclose the identity of all stockholders, partners, officers, members, and employees, and the Commissioner may refuse to issue a license in the name of a legal entity if the Commissioner is not satisfied that any officer, employee, stockholder, partner, or member thereof who may materially influence the applicant’s conduct meets the standards for licensure under this Act.

In summary, you can require customers to sign contracts with binding arbitration clauses in Delaware, but you must follow the requirements for binding interest arbitration and notice of intention to arbitrate. Additionally, viatical settlement providers and brokers must obtain a license from the Commissioner of the state of residence of the viator.

Source(s):
Jurisdiction

Delaware