When they are negotiating the terms of commercial contracts, companies frequently assume that inclusion of an arbitration clause is a no-brainer. After all, what business wants to invite costly, time-consuming litigation if it gets into a dispute with its contracting party? Better to provide in advance for a cost-effective, quick means of resolving litigation.
So out comes the standard boilerplate clause, often accompanied by a fee-shifting provision and, maybe as an afterthought, some specification of how arbitrators will be chosen. Savings with the stroke of a pen, right?
