A party with whom you have a contract relationship has sued you. The contract between the two of you includes an arbitration clause. Which of the following statements is true?
A)If the party sues on a contract with an arbitration clause they are deemed to forfeit the dispute.
B)Because one of the parties began the judicial process the judicial process must be completed before any arbitration can proceed.
C)If the party sued rather than began the arbitration, the case can no longer be arbitrated.
D)You have options. You could either answer the lawsuit and continue in litigation or make a motion to the court to compel arbitration.

Question

A party with whom you have a contract relationship has sued you. The contract between the two of you includes an arbitration clause. Which of the following statements is true?
A)If the party sues on a contract with an arbitration clause they are deemed to forfeit the dispute.
B)Because one of the parties began the judicial process the judicial process must be completed before any arbitration can proceed.
C)If the party sued rather than began the arbitration, the case can no longer be arbitrated.
D)You have options. You could either answer the lawsuit and continue in litigation or make a motion to the court to compel arbitration.

Quizplus · Accepted Answer

Arbitration clauses in contracts typically allow for disputes to be resolved through arbitration rather than litigation. If a party sues despite an arbitration clause, the other party has the option to either proceed with litigation by answering the lawsuit or request the court to enforce the arbitration agreement by filing a motion to compel arbitration.

A Party with Whom You Have a Contract Relationship Has