Published on January 11
What is an Arbitration Agreement
An arbitration agreement provides that two or more people will submit an existing or future dispute to arbitration. Arbitration allows a dispute to be decided by one or more persons (the “arbiters” or “arbitrators”) selected by the parties to the dispute instead of decided by a judge or jury in the court system. Arbitration agreements are most commonly made “prospectively” (meaning parties agree to arbitrate any future disputes) but can also be made “retrospectively” (meaning parties agree to arbitrate a dispute that has already arisen).
Arbitration agreements can be mandatory (the parties are required to seek arbitration …
Added in Business Disputes, Other Forms
Published on January 11
A fraudulent conveyance, also called a fraudulent transfer, is a transaction where one party (“Transferor”) gives or sells for less than full value an asset to another party (“Transferee”), leaving the Transferor without sufficient assets to pay his obligations. An example of a fraudulent transfer is an individual gift all his assets to a close friend in order not to pay his debts. Although historically a fraudulent transfer required a transfer to be made in bad faith, under modern law a good-faith transfer can still constitute a fraudulent conveyance. Simply put, a transaction …
Added in Business Disputes, Helpful Business Info, Real Estate
Published on January 7
Any business that produces a physical product faces potential liability if the product turns out to be defective. Additionally, any business that uses a defective product may have a cause of action against the producer and/or seller of the defective product. Suits to recover damages resulting from defective products are collectively referred to as “products liability lawsuits.” Although products liability is governed by state law, state law in this area is fairly uniform, so whether or not liability exists is unlikely to vary from state to state.
In order for a manufacturer to be held liable for damages, a plaintiff must …
Added in Business Disputes, Helpful Business Info
Published on January 7
Generally Arbitration Agreements Are Enforceable
When faced with the question of whether or not to enforce an agreement to arbitrate, American courts routinely uphold the vast majority of arbitration clauses. The legal basis for upholding contractual arbitration clauses is the Federal Arbitration Act, which mandates that arbitration agreements “shall be valid, irrevocable, and enforceable.” In Southland Corp. v. Keating, the Supreme Court of the United States held that if the agreement involves any element of interstate commerce, the Federal Arbitration Act applies to both federal and state courts.
If an arbitration agreement deals purely with an issue of intrastate …
Added in Business Disputes, Helpful Business Info
What Our Readers Have to Say