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

Requirements for Binding Arbitration Clauses in Minnesota

Yes, you can require customers to sign contracts with binding arbitration clauses in Minnesota. However, there are certain requirements that must be met.

Under Minnesota law, arbitration clauses in contracts must be “conspicuous and in bold print or capital letters” [1.1]. Additionally, the contract must be signed by both parties and the arbitration clause must be “separately signed or initialed by the parties” [1.1].

It is important to note that the Minnesota Supreme Court has held that arbitration clauses are “disfavored” and will be strictly construed against the party seeking to enforce them [2.2]. Therefore, it is important to ensure that the arbitration clause is clear and unambiguous.

If a dispute arises and one party seeks to compel arbitration, they must file a motion to compel arbitration with the court [5.2]. The court will then determine whether there is an enforceable agreement to arbitrate and, if so, will order the parties to arbitrate [5.2].

Additional Information on Arbitration Proceedings in Minnesota

Arbitration proceedings in Minnesota are governed by Minnesota Statutes, section 626.892, subdivision 7, clause (3) [2.1][3.1]. The statute encourages the use of collective bargaining procedures and binding arbitration to resolve disputes between labor and management [3.2].

Arbitrators in Minnesota have the responsibility to determine whether a matter will be heard orally or considered solely on written evidence [4.1]. If an oral hearing is required, the arbitrator must determine the time and place for the hearing and notify the parties [4.1]. The arbitrator may also order the parties to submit additional evidentiary materials if necessary [4.1].

Conclusion

To require customers to sign contracts with binding arbitration clauses in Minnesota, the arbitration clause must be conspicuous, separately signed or initialed by the parties, and clear and unambiguous. If a dispute arises, the party seeking to compel arbitration must file a motion with the court. Arbitration proceedings in Minnesota are governed by Minnesota Statutes, section 626.892, subdivision 7, clause (3), which encourages the use of collective bargaining procedures and binding arbitration to resolve disputes between labor and management.

Source(s):
Jurisdiction

Minnesota