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

Based on the documents provided, it appears that you can require customers to sign contracts with binding arbitration clauses in Idaho, subject to certain requirements.

Validity of Arbitration Agreement [1.2]

According to IDST 7-901, 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.

Proceedings to Compel or Stay Arbitration [1.1]

IDST 7-902 provides that on application of a party showing an agreement described in section 7-901, and the opposing party’s refusal to arbitrate, the court shall order the parties to proceed with arbitration. However, 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.

Fees and Expenses of Arbitration [1.3]

Unless otherwise provided in the agreement to arbitrate, the arbitrators’ expenses and fees, together with other expenses, not including counsel fees, incurred in the conduct of the arbitration, shall be paid as provided in the award.

Court - Jurisdiction [1.4]

The making of an agreement described in section 7-901, providing for arbitration in this state confers jurisdiction on the court to enforce the agreement under this act and to enter judgment on an award thereunder.

Limitations on Right to Sue Under Contract or Franchise Agreement [2.1]

Every stipulation or condition in a contract, by which any party thereto is restricted from enforcing his rights under the contract in Idaho tribunals, or which limits the time within which he may thus enforce his rights, is void as it is against the public policy of Idaho. However, this act does not apply to arbitration agreements between employers and employees or between their respective representatives (unless otherwise provided in the agreement).

Based on the above documents, it appears that you can require customers to sign contracts with binding arbitration clauses in Idaho, subject to the following requirements:

  • The arbitration agreement must be in writing and must be valid and enforceable under IDST 7-901.
  • 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 under IDST 7-902.
  • The fees and expenses of arbitration shall be paid as provided in the award, unless otherwise provided in the agreement to arbitrate under IDST 7-910.
  • The court has jurisdiction to enforce the agreement under this act and to enter judgment on an award thereunder under IDST 7-917.
  • The arbitration agreement cannot restrict a party from enforcing their rights under the contract in Idaho tribunals, or limit the time within which they may thus enforce their rights under IDST 29-110.

Therefore, you can require customers to sign contracts with binding arbitration clauses in Idaho, subject to the above requirements.

Source(s):
Jurisdiction

Idaho