You Have Just Graduated and Have Started Your Own Business

question 54

Essay

You have just graduated and have started your own business.You will be providing goods and services to the general public,and you are concerned about potential legal exposure and resultant costs of litigation.You'd like to add a mandatory arbitration clause to all of your contracts.Is a mandatory arbitration clause legal and valid,and if so,what concerns must you consider in constructing this clause?

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Definitions:

Legislative Branch

The branch of government responsible for creating and passing laws, in the United States, it is composed of the House of Representatives and the Senate.

Concurrent Powers

Powers in federal systems of government that are shared by both the state and federal governments.

Unicameral Legislature

A type of legislative body with a single chamber, in which all legislators convene to debate and vote on legislation.

Constitutional Lawmaking

The process of drafting, adopting, and amending laws and principles that govern a state or country, typically outlined in a constitution.