Many businesses include an arbitration provision in their contracts to enhance speed, ensure efficiency, and provide consistency in resolving business disputes. While most courts generally favor arbitration if agreed by the parties, a recent court ruled that the business filing a motion to dismiss a lawsuit before filing its motion to compel arbitration waived the contractual right to arbitrate the dispute. Be careful how you or your lawyer responds to a lawsuit to avoid waiving your contractual right to arbitrate the dispute.
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