BBB is your dispute resolution policy

Below are examples both of a clause that meets the approved policy, and a clause that does not meet the policy, with appropriate explanations.

It doesn't take a great deal of extra language or space to meet all the requirements of the approved BBB policy, as the following example attests:

Bear in mind that this is just one example of a BBB clause that meets all the minimum requirements of the BBB policy. A number of businesses (with the advice of their attorneys) are drafting agreements that are much more specific about the types of disputes to be covered under the agreement, the scope of the arbitrator's authority, and many other issues. In some cases, the arbitration agreement may be included in the basic contract (as in the above example); in other cases, the arbitration agreement may be a separate document. The policy is reasonably broad, to allow businesses, BBBs, and their respective legal counsel significant flexibility in implementing the policy, provided the basic principles are met.

An example that meets the approved policy:

AGREEMENT TO ARBITRATE. You and we agree to submit any dispute arising under this agreement, with the exception of disputes alleging criminal or statutory violations, to binding arbitration in accordance with the BBB Rules of Binding Arbitration (Pre-Dispute). A volunteer BBB arbitrator will render a decision that the arbitrator considers to be fair; in doing so, the arbitrator is not required to apply legal principles. The arbitrator's decision will be final and binding on both you and us, and judgment on the decision may be entered in any court having jurisdiction. All administrative fees for the arbitration will be paid by the business. Further information about BBB arbitration may be obtained by contacting the BBB of (BUREAU CITY) at (BBB PHONE NUMBER/ WEBSITE). This Agreement to Arbitrate affects important legal rights. Neither of us will be able to go to court for disputes that must be arbitrated. NEITHER OF US WILL BE COMMITTED BY THE TERMS OF THIS AGREEMENT TO ARBITRATE UNLESS YOU SIGN BELOW, IN WHICH EVENT WE WILL BOTH BE COMMITTED:

Accepted:__________________________ Date:_________________ (Signature/Initials of Customer)

An example that does NOT meet the approved policy:

Arbitration. Any controversy or claim arising out of this contract, or any breach thereof, shall be submitted to arbitration under the rules of the Better Business Bureau and the Federal Arbitration Act

The BBB believes that the arbitration of disputes fosters the interests of consumers and the responsible business community best when consumers voluntarily make an informed choice to enter an open and accessible arbitration process offered by an individual business under fair and impartial rules administered by an agency in which the public has confidence. In furtherance of this belief, the Board of Directors of the International Association of Better Business Bureaus has adopted the following policy for pre-dispute, binding arbitration clauses which name the BBB as an arbitration forum:

THE RIGHT TO BE INFORMED:

The BBB believes some information is so critical in making marketplace decisions that it must be provided at the point where purchasing decisions are made. Accordingly, pre-dispute binding arbitration clauses must be separated from other contract language by a box, highlighting or larger type face. In addition, pre-dispute binding arbitration clauses must clearly and simply do all of the following:

• Identify the types of disputes that are covered by the arbitration clause, which may not include claims for criminal or statutory violations.
  
  
• Identify the arbitration forum and provide a telephone number of the forum or other reasonable means that can be used to obtain additional information about the forum.
  
  
• Clearly disclose the nature and amount of any fees consumers may have to pay in connection with the filing or administration of their case.
  
  
• Identify the standard that will be used as the basis for the arbitrator’s decision (e.g. application of law or fairness).
  
  
• Advise consumers that the clause affects important legal rights, and that the consumer will not be able to go to court for disputes covered by the clause if the consumer signs the arbitration clause.

REQUIREMENT THAT CONSUMER CLEARLY ACKNOWLEDGE ACCEPTANCE OF ARBITRATION CLAUSE:

In order to ensure that the consumer has knowingly chosen arbitration as the method of resolving disputes covered by the arbitration clause, binding arbitration clauses must either:

• Contain a separate signature line, appearing immediately below the arbitration clause, for the consumer to sign or initial to acknowledge acceptance of the terms of the arbitration clause. There must also be a statement that the consumer will not be bound by the terms of the clause unless the consumer signs or initials on the signature line.

or

• Appear prominently and immediately above the signature line for the contract.

BBB KNOWLEDGE AND CONSENT:

The names “Better Business Bureau” and “BBB” are registered trademarks owned by the International Association of Better Business Bureaus, Inc. To ensure the implementation of these protocols and to maintain the public’s confidence in the BBB system, any business or organization planning on using a pre-dispute binding arbitration clause which names the BBB must be submitted to the BBB 30 days prior to any introduction and use in consumer contracts for written BBB consent. In the absence of such submission and consent, the BBB may – at its sole discretion – decline to administer arbitrations submitted under the clause