Which statement about the arbitration submission agreement is true?

Which statement about the arbitration submission agreement is true?

• A. It is non-binding
• B. It is optional until a dispute arises
• C. It is a document that governs discovery
• D. It is a binding contract to arbitrate the dispute

Answer: (D)

The arbitration submission agreement is a binding contract to arbitrate the dispute. When parties sign it, they commit themselves to have their claims resolved by arbitration rather than in court, and it sets the authority of the arbitrator and the process under which the dispute will be heard. It’s enforceable the moment it’s signed, creating a legal obligation to proceed in arbitration according to the agreed rules. While discovery may be addressed within the arbitration framework, the main purpose of the submission agreement is to bind the parties to arbitration, not merely to govern discovery. It isn’t an optional step that you can defer until a dispute arises; it establishes the duty to arbitrate for disputes covered by the agreement.

The arbitration submission agreement is a binding contract to arbitrate the dispute. When parties sign it, they commit themselves to have their claims resolved by arbitration rather than in court, and it sets the authority of the arbitrator and the process under which the dispute will be heard. It’s enforceable the moment it’s signed, creating a legal obligation to proceed in arbitration according to the agreed rules. While discovery may be addressed within the arbitration framework, the main purpose of the submission agreement is to bind the parties to arbitration, not merely to govern discovery. It isn’t an optional step that you can defer until a dispute arises; it establishes the duty to arbitrate for disputes covered by the agreement.