When addressing which tips would be helpful in creating a binding arbitration clause, the text authors suggest what?

A) The clause should treat both parties as if they understand the law and should be signed in front of a notary.
B) The clause should always dictate that the arbitration will be performed in a certain location so that both parties know.
C) The clause should be bilateral, clear, state which party pays the fees, and specify how the arbitrator will be selected.
D) The clause should allow that if the arbitration award is not approved by both parties, the parties can then mediate the dispute instead.
E) The clause should always limit the remedies the parties can receive.

Question

Pranav Saini · Accepted Answer

Final Answer : C, Explanation :  The correct answer is C because a binding arbitration clause should be bilateral (applying equally to both parties), clear in its terms, specify who pays for the arbitration fees, and detail the method for selecting an arbitrator. These elements ensure that the arbitration process is fair and understood by both parties involved.

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