(1) Agreement to Arbitrate. In mutual consideration of the sale and purchase of goods, you for yourself, your heirs, successors and assigns (the “Buyer”) and we (the “Seller” and all of its directors, officers, employees, agents, parent corporations, subsidiary corporations, corporations affiliated with Seller by direct or indirect common ownership, and the assignee of this contract) agree with limited exception, that any and all disputes, claims, or controversies of any kind and nature between us arising out of or relating to the relationship between us will be resolved through mandatory, binding arbitration. This agreement to arbitrate covers claims that (a) arise out of or relate to this Agreement; (b) arise out of or relate to any past transactions or dealings between us; (c) arise out of or relate to any future transactions or dealings between us; and (d) disputes about whether any claims, controversies, or disputes between us are subject to arbitration to the extent permitted by federal law. Because you and we have agreed to arbitration, both of us are waiving our rights to have disputes resolved in court by a judge or jury, except as set forth below.
(2) Examples of Arbitrable Claims. Examples of disputes that are required to be arbitrated under this Agreement include, but are not limited to, the following claims: (a) an alleged breach of any contractual promise; (b) that any agreement between Seller and Buyer is void or voidable based on alleged fraud, unconscionability, duress, illegality, or any other ground; (c) that any Alternative Dispute Resolution Agreement between us is void or voidable based on alleged fraud, unconscionability, duress, illegality, or any other ground; (d) that the parties never entered into an Alternative Dispute Resolution Agreement; (e) regarding the scope or interpretation of any agreement or any Alternative Dispute Resolution Agreement; (f) tort claims; (g) alleged violations of federal or state statutes; (h) for injunctive or equitable relief; and (i) permissive and compulsory counterclaims to any claim subject to arbitration.
(3) Exceptions to Arbitration. Notwithstanding any language in this Agreement to the contrary, in the event of a Default in payment under this Agreement, the Seller may seek its remedies in an action at law for payment default; and, its decision to do so shall not be deemed to be a waiver of its right thereafter to insist upon and seek specific enforcement of its rights under this Agreement, in the event that the Buyer shall assert a counterclaim or right of setoff in such judicial or non-judicial action.
(4) Arbitration to Be Conducted by an Arbitration Administrator. The party seeking arbitration shall select one of the following two arbitration administrators: JAMS (Judicial Arbitration and Mediation Services, Inc.) or National Arbitration and Mediation. Except as modified hereby, the arbitration shall be conducted according to the rules and procedures of the selected Administrator. We will obtain a copy of the Administrator’s rules and procedures for you at your request. In the event that one of these administrators is unavailable to serve, then the other administrator shall be deemed selected. If both administrators are unavailable, and the parties agree on a different administrator, such different administrator shall be deemed selected; and, if the parties do not agree on a selection, then the parties shall be deemed to have waived arbitration hereunder, and further agree that they waive the right to a jury trial, in favor of having a judge, sitting without a jury, determine the rights and remedies of the parties with respect to all disputes, claims or controversies between them.
(5) Costs of Arbitration. If you initiate an arbitration proceeding, you will pay the first $125 for the filing fees (or such lesser amount as required to file a complaint in a court of general jurisdiction in the state where you reside). We will then pay any filing fees necessary for you to initiate a claim for relief of up to $50,000. You will then be responsible for any fees in excess of the amount stated in the preceding sentence. We will not pay your attorney’s fees or expert witness fees, unless the arbitrator awards those fees to you. If we initiate arbitration, we will pay all filing fees, administrative fees and document hearing fees.
Notwithstanding these provisions regarding the payment of fees, the arbitrator may, as a part of the arbitration award, require that you or we pay all of the costs of arbitration in accordance with the terms of any substantive law governing the claims which are subject to arbitration. The arbitrator is not permitted to assess attorney’s fees or expert witness fees unless the applicable substantive law permits such an award. The arbitrator may assess other fees associated with the arbitration as provided by the arbitration company’s rules, except those fees set forth above that will be paid by the Seller.
(6) Location of Arbitration. You may choose either of two options for the location of the arbitration proceeding: (a) the county where you live at the time of the arbitration, if you live in a state where the Seller does business; or (b) the county where you signed this Agreement.
(7) Law Applicable to Arbitration Proceedings. The arbitrator is required to follow all substantive law applicable to any dispute, including, without limitation, the applicable statute of limitations. The arbitrator will be bound by the Federal Rules of Evidence, and must respect any applicable attorney-client privilege, attorney work-product privilege, and any other applicable privilege. The arbitrator is required to issue a written decision setting forth the decision and the reasons for that decision. You and we agree that the arbitrator’s decision will be final, binding, and enforceable in any court of competent jurisdiction.
(8) Judicial Review of Arbitrator’s Decision. Except as set forth herein, you and we agree that the arbitrator’s decision CANNOT BE APPEALED. The arbitrator’s decision is subject to judicial review only on the grounds set forth in Title 9, Section 10 of the United States Code, as well as on the ground that the decision, findings, or rationale of the decision is manifestly inconsistent with the terms of this Agreement or the Federal Arbitration Act.
(9) No Class Actions or Joinder of Additional Parties. You agree that you will not serve as a class representative or participate as a class member in an arbitration proceeding, that only your claims will be addressed in the arbitration proceeding, and that additional parties cannot be added to the arbitration proceeding unless you and we agree in writing before the arbitration. A dispute between us that is required to be arbitrated under this Agreement, will be arbitrated only between us, even if there are additional parties to the dispute or even if you make allegations that your dispute should be handled as a class action.
(10) Replacement of Existing Arbitration Agreements. You and we agree that this Alternative Dispute Resolution Agreement supersedes and replaces any prior Alternative Dispute Resolution Agreement between us.
(11) Federal Arbitration Act Applies. The parties understand and agree that this arbitration agreement is made pursuant to a transaction involving interstate commerce and shall be governed by the Federal Arbitration Act.
(12) JURY TRIAL WAIVER. IF IT IS EVER DETERMINED THAT SOME PORTION OF THIS AGREEMENT IS VOID, VOIDABLE, OR UNENFORCEABLE, OR IF THE INCLUSION OF SOME PROVISION IN THIS AGREEMENT WOULD RENDER THE AGREEMENT UNENFORCEABLE, OR IN THE EVENT THAT THIS AGREEMENT IS NOT SUBJECT TO ENFORCEMENT BASED UPON ANY FUTURE ELIMINATION OF CONSUMER DISPUTES FROM THE APPLICATION OF THE FEDERAL ARBITRATION ACT, THEN THE PARTIES HERETO AGREE THAT THEY WAIVE THE RIGHT TO A JURY TRIAL, IN FAVOR OF HAVING A JUDGE, SITTING WITHOUT JURY, DETERMINE THE RIGHTS AND REMEDIES OF THE PARTIES WITH RESPECT TO ALL DISPUTES, CLAIMS OR CONTROVERSIES BETWEEN THEM.