Electronic Arbitration Agreements

The Federal Arbitration Act (FAA)1 generally requires the application of “written” arbitration agreements contained in interstate trade contracts. Specifically, this requires a “written provision” on arbitration procedures in the contract, or a “written agreement to submit to arbitration.” 2 At the time of the faA`s adoption, the dissemination of electronic signatures and contracts was probably not envisaged; That is why we are looking for other pieces of legislation and questions of judgment to analyze the issue of writing. For practical purposes, the applicability of electronic agreements is subject to the Federal Electronic Signatures in Global and National Commerce Act (E-SIGN). , executed or accepted. 8 The courts have interpreted this definition consistently to apply to any case that is the subject of a declaration of approval on behalf of the contracting parties. Electronic arbitration agreements can be applied under the FAA. However, this emerging model creates unique problems and parties wishing to use electronic arbitration agreements will be assisted by a lawyer to ensure the formation of valid contracts. Enforceable arbitration agreements can be an effective way to limit health care providers` exposure to exposure to liability, not only with respect to patient complaints, but also for the legal actions of employees and sellers. However, as more and more contracts are executed electronically, the question arises as to whether electronic arbitration agreements can be applied. While the FAA applies only to “written provisions” or “written agreements,” the few jurisdictions that have explicitly considered the subject have no difficulty in concluding that electronic arbitration agreements comply with the “written provision” and therefore fall within the FAA`s jurisdiction framework. In Campbell v. General Dynamics Gov`t Sys.,9 for example, the Premier Circuit found that “[i]n of all [e-SIGN] events probably excludes any flat rule that an arbitration agreement under the ADA is not applicable simply because its promoted chose to use e-mail as support to obtain the agreement.” 10 The Court stated that [its clear words] [e-SIGN] prohibited any interpretation of the FAA`s “written provision” requirement, which excludes the legal effect of an agreement solely on the basis of its electronic form.” 11 Similarly, the Northern District of Illinois in Re RealNetworks, Inc., Privacy Litigation,12 concluded that “the easily printable and memorable nature of a contract is sufficient to do so “in writing.” 13 “Thus,” the court found, “the [electronic] licensing contract, including the arbitration provision, is a written agreement.” 14 In addition, many courts have obtained electronic arbitration agreements under the FAA, implicitly finding that these agreements are “written provisions” or “written agreements” so that they fall within the scope of the FAA15.