Is Your ADR Clause Enforceable?

Law360, New York (October 15, 2013, 4:58 PM EDT) -- A number of recent court decisions have addressed the enforceability of contract clauses that call for alternative dispute resolution procedures instead of traditional courtroom litigation.

While not in the franchise context, the U.S. Supreme Court's recent decision in American Express v. Italian Colors Restaurant guides drafters of arbitration clauses. The court attempted to clarify concerns and confusion that had arisen in response to its earlier decision in AT&T Mobility LLC v. Concepcion.

After that decision was handed down, a number of lower courts had interpreted the...
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