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

Yes, you can require customers to sign contracts with binding arbitration clauses in Massachusetts, subject to certain requirements. The requirements for binding arbitration clauses in Massachusetts depend on the type of arbitration being sought.

Binding Arbitration for Collective Bargaining Agreements

If you are seeking binding arbitration for a collective bargaining agreement, you must comply with the requirements set forth in 456 CMR 16.02. Specifically, you must provide the Department of Labor Relations with the following information in writing:

  • The full names and addresses of the employer and the employee organization involved.
  • A clear and concise statement of the dispute concerning the interpretation or application of the applicable collective bargaining agreement.
  • A specific reference to the particular part or parts of the written agreement allegedly violated. A copy of the entire written agreement must be submitted with the request.
  • Any other relevant facts which may be required in the request for binding arbitration forms issued by the Department.

In addition, no request for binding arbitration shall be entertained by the Department more than 60 days after exhaustion of the contractual grievance procedure, if any. [1.1][1.2]

State Certified Arbitration for Consumer Disputes

If you are seeking state certified arbitration for consumer disputes, you must comply with the requirements set forth in 201 CMR 11.02. Specifically, you must submit a “request for arbitration” form to the Office of Consumer Affairs and Business Regulation (OCABR) that includes the following information:

  • A statement that the consumer believes the motor vehicle’s use, market value, or safety is substantially impaired by the nonconformity(s) complained of.
  • A statement that the nonconformity(s) complained of is not the result of owner negligence, damage caused by accident (except as a result of the nonconformity(s)), vandalism, attempts to repair the vehicle by a person other than the manufacturer, its agent or authorized dealer, or any attempt to substantially modify the vehicle without the manufacturer’s authorization.
  • A statement that the consumer either gave the manufacturer, the agent or authorized dealer at least three attempts to correct the same substantial defect, or that the vehicle was out of service by reason of repair for at least 15 business days within the term of protection.
  • A statement that the consumer gave the manufacturer its seven business day final opportunity to cure the non-conformity(s) after the limits set forth in 201 CMR 11.02(2)(d) were met or exceeded.
  • A narrative description of the claimed nonconformity(s) and a chronology of the repair attempts.
  • Compliance with all other rules, regulations, procedures and provisions of law.

For used car arbitration, additional requirements apply. [3.1]

Home Improvement Disputes

If you are seeking arbitration for home improvement disputes, you must comply with the requirements set forth in 201 CMR 14.03. Specifically, you must submit a “request for arbitration” form to the Office of Consumer Affairs and Business Regulation (OCABR) that includes the following information:

  • A narrative description of the problem.
  • A copy of the written contract.
  • A monetary amount sought.
  • Compliance with all other rules, regulations, procedures and provisions of law.

Additional requirements apply for homeowner and contractor eligibility, counterclaims, and arbitration fees. [2.1][2.2]

Conclusion

To require customers to sign contracts with binding arbitration clauses in Massachusetts, you must comply with the requirements set forth in the applicable regulations. For binding arbitration for collective bargaining agreements, you must provide the Department of Labor Relations with specific information in writing. For state certified arbitration for consumer disputes, you must submit a “request for arbitration” form to the Office of Consumer Affairs and Business Regulation (OCABR) that includes specific information. For home improvement disputes, you must submit a “request for arbitration” form to the OCABR that includes specific information. [1.1][2.1][3.1][2.2][1.2]

Source(s):
Jurisdiction

Massachusetts