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

Requirements for Binding Arbitration Clauses in Oregon

In Oregon, businesses can require customers to sign contracts with binding arbitration clauses, but there are certain requirements that must be met.

Requirements for Enforceability

To ensure that a binding arbitration clause is enforceable in Oregon, the following requirements must be met:

• The clause must be conspicuous and in boldface type ^[1.8].
• The clause must be written in clear and understandable language ^[1.8].
• The customer must be given a copy of the agreement ^[1.8].
• The customer must be given a reasonable amount of time to review the agreement ^[1.8].
• The customer must be given the opportunity to opt-out of the arbitration clause within a reasonable amount of time ^[1.8].

Limitations on Enforceability

It is important to note that there are limitations on the enforceability of binding arbitration clauses in Oregon. For example, a clause that waives a customer’s right to bring a class action lawsuit may be unenforceable ^[1.9]. Additionally, if a clause is found to be unconscionable, it may not be enforced ^[1.7].

Conclusion

In summary, businesses can require customers to sign contracts with binding arbitration clauses in Oregon, but the clauses must meet certain requirements to be enforceable. These requirements include conspicuousness, clarity, and the opportunity to opt-out. However, there are limitations on the enforceability of these clauses, such as the prohibition on waiving the right to bring a class action lawsuit and the possibility of unconscionability.

Jurisdiction

Oregon

• General