Ben and Jerry enter into a business agreement to assemble and sell prepackaged salads. In their written agreement, they both agree that they will be required to settle all disputes through arbitration. Which of the following is true of this situation?
A) This is an example of a mandatory arbitration clause.
B) This is an example of a voluntary arbitration clause.
C) This is an example of a caucus.
D) This is an example of court-annexed mediation.
E) This is an example of a postdispute arbitration agreement.

Question

Quizplus · Accepted Answer

Agreements to voluntarily arbitrate come in two basic forms. One is known as the predispute arbitration clause. In essence, the contracting parties show good judgment in understanding conflicts exist, conflicts give rise to disputes, and disputes are better resolved through arbitration rather than by litigating.

Ben and Jerry Enter into a Business Agreement to Assemble