Massachusetts Arbitration Agreement Between Operator and Nonoperator
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FAQ
One possible solution lies in the definition of ?unconscionable agreements.? Under the Federal Arbitration Act, one of the few ways to void an arbitration agreement is to prove that the agreement is ?unconscionable? under the standard rules applying to contract formation.
Arbitration is a private, informal process by which all parties agree, in writing, to submit their disputes to one or more impartial persons authorized to resolve the controversy by rendering a final and binding decision called an Award.
This law provides that arbitration agreements are generally valid and enforceable. The major exception to this provision is that the arbitration agreement is not enforceable if it violates the general law of contracts ? which applies to all contracts under the law of the state that governs the agreement.
Under the Federal Arbitration Act (?FAA?), 9 U.S.C. § 2, arbitration clauses are enforceable unless they can be revoked for the same legal or equitable reasons that allow any contract to be revoked. See 9 U.S.C. § 2.
A party is deceived, intimidated, or coerced during the execution of the arbitration agreement and requests a declaration that such arbitration agreement is invalid; and. The arbitration agreement violates prohibitions specified by the law.
In addition, the infringement of other rules of contract law may also constitute a ground for the annulment of an arbitration agreement, such as in cases involving fraud, 20 illegality, 21 or lack of capacity, 22 among others.
The Arbitration Fairness Act was introduced in May of 2011 (S 987 IS0) and would make any pre-dispute arbitration agreement invalid and unenforceable if it requires arbitration of employment disputes, consumer disputes or civil rights disputes.
The Massachusetts Act adopted the central provision of the FAA, which makes both pre and post dispute agreements to arbitrate ?valid, enforceable and irrevocable,? except on the grounds for the revocation of other contracts. M.G.L. c. 251 § 1.
