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

Yes, you can require customers to sign contracts with binding arbitration clauses in Georgia, provided that the agreement meets the requirements for enforceable arbitration agreements. The enforceability of arbitration agreements is governed by O.C.G.A. § 9-9-3.

Requirements for enforceable arbitration agreements in Georgia

To be enforceable, an arbitration agreement must meet the following requirements:

  1. In writing: The agreement must be in writing. [1.1]
  2. Clear and unambiguous: The agreement must be clear and unambiguous. [1.1]
  3. Covered disputes: The agreement must cover the disputes that may arise between the parties. [1.1]
  4. No unconscionability: The agreement must not be unconscionable. [1.1]
  5. No waiver of substantive rights: The agreement must not waive substantive rights. [1.1]
  6. No waiver of statutory rights: The agreement must not waive statutory rights. [1.1]
  7. No waiver of right to a jury trial: The agreement must not waive the right to a jury trial. [1.1]
  8. No waiver of right to appeal: The agreement must not waive the right to appeal. [1.1]

An arbitration award must also meet certain requirements to be valid. An arbitration award, irrespective of the country in which it was made, shall be recognized as binding and, upon application in writing to the competent court, shall be enforced subject to the provisions of O.C.G.A. § 9-9-57 and O.C.G.A. § 9-9-58. [2.1]

Conclusion

In summary, you can require customers to sign contracts with binding arbitration clauses in Georgia, provided that the agreement meets the requirements for enforceable arbitration agreements. An arbitration award must also meet certain requirements to be valid and recognized as binding. If you have any further questions, please let me know.

Source(s):
Jurisdiction

Georgia, Georgia