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

Yes, you can require customers to sign contracts with binding arbitration clauses in Kansas, subject to certain requirements.

Requirements for binding arbitration clauses in Kansas

According to KSST 58a-205, a provision in a trust instrument requiring the mediation or arbitration of disputes between or among beneficiaries, a fiduciary, a person granted nonfiduciary powers under the trust instrument, or any combination thereof, is enforceable, except for disputes relating to the validity of a trust. However, all interested persons to the dispute must consent to mediation or arbitration of such dispute.

KSST 5-426 specifies that parties to an agreement to arbitrate or arbitration proceeding may waive or vary the effect of the requirements of K.S.A. 5-423 through 5-453, to the extent permitted by law. However, before a controversy arises that is subject to an agreement to arbitrate, a party to the agreement may not waive or agree to vary the effect of certain requirements, including the right to notice of the initiation of an arbitration proceeding and the right to be represented by a lawyer at any proceeding or hearing under K.S.A. 5-423 through 5-453.

KSST 16-1505 requires that any swine purchasing contract, swine marketing contract, or swine production contract between a contractor and a swine production facility owner or swine marketing pool or swine producer must contain language providing for resolution of contract disputes by either mediation or arbitration. All arbitration proceedings held pursuant to this act shall follow the procedures set forth in K.S.A. 5-201 et seq.

Conclusion

In summary, you can require customers to sign contracts with binding arbitration clauses in Kansas, subject to certain requirements. The arbitration clause must comply with the requirements set forth in KSST 58a-205, KSST 5-426, and KSST 16-1505.

Jurisdiction

Kansas

• General