an excerpt from ALTERNATIVE DISPUTE RESOLUTION 2001 EDITION
published by the llinois Institute for Continuing Legal Education

© 2001 by Stephen E. Smith

III. Drafting the International Arbitration Agreement

V. [23.28] Related Contracts

Particularly useful in large scale construction disputes, the AAA has suggested this provision if the parties want to have all the disputes among all the subcontractors, suppliers etc. resolved in one arbitration proceeding. Such provisions require that all of the interested parties agree that all subcontracts pertaining to the project have incorporated the prime contract and its arbitration provisions.

W. [23.29] Service of Process

The parties should designate the manner of acceptable service of process and delivery of notices in plain language in the arbitration clause.

X. [23.30] Sole Option Arbitration Clauses

A sole option is another form of asymmetrical clause. Such clauses not only make arbitration the default dispute resolution mechanism, but also allow one of the parties to resort to court. It is useful in an uneven bargaining power situation where the more powerful bargainer believes that he or she will do better in court than in arbitration.