This form is an Arbitration Reference Clause usable to compel arbitration in contracts where licensing, patents, or commercial trade secrets are a factor.
The Minnesota Arbitration Reference Clause is a provision commonly included in contracts and legal agreements in the state of Minnesota, United States. It outlines the parties' agreement to resolve any disputes through arbitration rather than traditional litigation in courts. This clause embodies the principles of alternative dispute resolution (ADR), offering a cost-effective and efficient means of resolving conflicts. By incorporating the Minnesota Arbitration Reference Clause, the contracting parties agree to submit any disputes arising from the agreement to arbitration. Arbitration is a private and confidential process wherein an impartial third party, known as an arbitrator, facilitates the resolution of the dispute. The selected arbitrator may be an individual agreed upon by the parties or chosen from a list provided by an arbitration institution. There are various types of Minnesota Arbitration Reference Clauses that can be used, depending on the specific needs and preferences of the parties involved. Some common variations include: 1. Binding Arbitration Clause: This type of clause makes the decision reached through arbitration final and legally binding on the parties. It typically forecloses the option of further legal actions, except in limited circumstances such as fraud or misconduct by the arbitrator. 2. Non-Binding Arbitration Clause: In contrast to binding arbitration, a non-binding clause allows parties to pursue additional legal remedies even after the arbitration process. This option allows for a trial de Nova, where the dispute is re-litigated before a court if the arbitration does not yield a satisfactory resolution. 3. Institutional Arbitration Clause: This type of clause designates an arbitration institution, such as the American Arbitration Association (AAA) or the JAMS, to administer the arbitration proceedings. The chosen institution provides rules and guidelines for the arbitration process, ensuring fairness and adherence to established practices. 4. Ad Hoc Arbitration Clause: An ad hoc arbitration clause differs from an institutional clause as it empowers parties to directly select the procedures and rules governing the arbitration without relying on any external arbitration institution. Ad hoc proceedings require parties to establish their own rules, including the appointment of arbitrators and the conduct of the arbitration. Regardless of the specific type of Minnesota Arbitration Reference Clause employed in a contract, the fundamental objective remains the same — to resolve disputes outside of the traditional court system and promote a more efficient, private, and cost-effective method of conflict resolution.
