Glossary → Disputes
Disputes

Arbitration Clause

An agreement to settle disputes privately instead of in court.

An arbitration clause requires disputes to be resolved by a private arbitrator rather than a judge or jury. It often waives your right to appeal and to join a class action. Arbitration can be faster, but it removes important protections — the class-action waiver is usually the most consequential part.

In practice

“Any dispute shall be resolved by binding arbitration administered by the AAA.” — you give up court and, usually, the right to appeal.

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