More On

Litigation: Arbitration v. litigation

7 factors to consider before you draft a mandatory arbitration clause

The conventional wisdom among many business owners is that arbitration is more efficient than litigation, and that mandatory arbitration clauses should be included wherever possible. Like most generalizations, however, the truth is not so simple. Here are several factors you should consider when deciding whether to incorporate a mandatory arbitration clause into that contract you are drafting.

1. Time

5. The law

If you’re still leaning toward arbitration, consider one final question: On what basis do you want your dispute to be decided? In a courtroom, the judge is constrained by the law as it is reflected in statutes and prior decisions, and the trial will be governed by the rules of evidence.

Contributing Author

author image

Alan Freeman

Alan Freeman is a partner in the Washington, D.C. office of Blank Rome. He advises and represents clients in a wide range of industries, including...

Bio and more articles

Join the Conversation

Advertisement. Closing in 15 seconds.