This form is an Arbitration Reference Clause usable to compel arbitration in contracts where licensing, patents, or commercial trade secrets are a factor.
The New Jersey Arbitration Reference Clause is a legal provision commonly included in contracts and agreements to outline the process of resolving disputes through arbitration instead of traditional litigation. It is designed to streamline dispute resolution, reduce costs, and provide a quicker resolution for parties involved. Arbitration reference clauses are widely used in various industries such as business contracts, employment agreements, construction contracts, and consumer agreements. In New Jersey, several types of arbitration reference clauses can be identified, each serving specific purposes and catering to the needs of different parties. These include: 1. Mandatory Arbitration Reference Clause: This type of clause obligates the parties involved to submit any potential disputes or claims arising from the contract exclusively to arbitration. It ensures that arbitration is the primary method of dispute resolution. 2. Voluntary Arbitration Reference Clause: This clause grants the parties the option to resolve disputes either through arbitration or traditional litigation. It provides flexibility for the parties involved to choose the dispute resolution method that best suits their needs. 3. Binding Arbitration Reference Clause: This clause signifies that the arbitration decision or award rendered by the arbitrator(s) is final and legally binding on all parties involved. It prevents the possibility of further litigation or appeal following the arbitration process, promoting finality of dispute resolution. 4. Non-Binding Arbitration Reference Clause: In contrast to the binding reference clause, this type of clause allows parties to resort to traditional litigation even after going through the arbitration process. Non-binding arbitration serves as a preliminary step for the parties to assess the strength of their case and potentially reach a settlement before initiating formal legal proceedings. The New Jersey Arbitration Reference Clause is favored by many due to its advantages, including confidentiality, expertise of arbitrators, reduced costs, expeditious resolution, and flexibility in selecting arbitrators. It is important for parties to carefully consider the specific type of arbitration reference clause they wish to include in their contracts, keeping in mind their unique requirements and preferences. Seeking legal advice when drafting or amending arbitration reference clauses is highly recommended ensuring they align with applicable New Jersey laws and regulations.
