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Parameters: The entire assignment must be typewritten in Times New Roman or Arial 12-point font, double spaced, and with 1-inch margins.

Arbitration Clause

  1. The arbitration clause must be signed by both parties (B & B Construction and the employee). Include a place on the arbitration clause for the signatures.
  2. The arbitration clause must be on a separate page.


  1. The memo must be formatted using the elements of an inter-office memorandum: the Heading, which will include To: (who it will be addressing, From: (the memorandum will be written by you), Date: (date in which the memorandum is written), and the Re:  (what the memorandum is in regards to).
  2. The memo should be 1 – 2 pages in length.
  3. The memo must include at least three scholarly sources not including the text book.

Purpose: This assignment will help you understand arbitration as an alternative dispute resolution method, the steps in the arbitration process, and how to prepare an arbitration clause.

Assignment Description: You are working with Redwood and Associates. You company represents a construction company, B & B Construction. The owner of B & B Construction, Mr. Bill, has approached your firm about including an arbitration clause for his employees, in the event there is a dispute between the company and employees. Your supervising attorney has asked you to draft the arbitration clause for his review. Your firm usually utilizes the services of an affiliated United States Arbitration & Mediation (USA&M) office if arbitration is ever needed.  The arbitration clause should include the following:

Please follow these steps on how to write it.

Arbitration Clause

Your supervising attorney has instructed you to address the following in the first paragraph of the arbitration clause:

  1. Research and designate a specific USA&M office in Wisconsin (you will need to conduct research for an office in the state of Wisconsin).
  2. Describe and include a method for selecting an arbitrator in the event there is a dispute between B & B Construction and an employee.
  3. Discuss whether the ruling of the arbitrator is binding or non-binding on the parties to the dispute.

The second paragraph of the arbitration clause should include the following:

  1. Discuss who is responsible for the arbitration fees.
  2. Explain the penalty for not proceeding with arbitration and what the employee will be responsible for if they do not proceed with arbitration.


Your supervising attorney want to make sure that any other office personnel reviewing the file understands why B & B Construction is interested in an arbitration clause. He has asked that you prepare a memo to the File addressing the following:

  1. List and discuss the ethical and legal issues in the private arbitration process.
  2. Discuss the advantages and disadvantages of private arbitration as a dispute resolution process.
  3. Explain why one would choose private arbitration over the mini-trial.

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