Ask Reggi Your Question Now

Reggi is the free generative AI assistance for regulatory compliance
Ask a Question

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

Yes, you can require customers to sign contracts with binding arbitration clauses in Mississippi. The Mississippi Code allows parties to agree in writing to submit any controversy existing between them at the time of the agreement or any controversy thereafter arising between them relating to such contract to arbitration [1.1].

Requirements for binding arbitration clauses in Mississippi

To ensure that your binding arbitration clause is enforceable in Mississippi, you should consider the following requirements:

  1. Informed consent: The parties must enter into the arbitration agreement voluntarily and with informed consent. This means that the parties must understand the nature and consequences of the agreement [1.1].
  2. Written agreement: The arbitration agreement must be in writing [1.1].
  3. Scope of the agreement: The arbitration agreement must clearly define the scope of the disputes that are subject to arbitration [1.1].
  4. Waiver of right to court: The arbitration agreement must clearly waive the parties’ right to a court trial [1.1].
  5. Notice of right to opt-out: If the arbitration agreement is included in a public contract, any bidder may refuse to accept such clause and shall so state on the bid document before entering into such public contract, and such refusal shall not be cause to reject any bid on, or refuse the award of such public contract [1.1].

It is important to note that the Mississippi Code applies only to agreements and provisions for arbitration made subsequent to July 1, 1981 [1.2].

If either party initiates litigation against the other with respect to such agreement, the arbitration provision shall be deemed waived unless asserted as a defense on or before the responding party is required to answer to such litigation [1.1].

Conclusion

In conclusion, you can require customers to sign contracts with binding arbitration clauses in Mississippi, provided that the requirements for such clauses are met. These requirements include informed consent, a written agreement, a clear scope of disputes subject to arbitration, a waiver of the right to a court trial, and notice of the right to opt-out. Additionally, the Mississippi Code applies only to agreements and provisions for arbitration made subsequent to July 1, 1981 [1.2].

Source(s):
Jurisdiction

Mississippi