Arbitration Clause

An agreement which includes a provision which requires a person to submit to arbitration any dispute arising between the parties to the agreement must include specific authorization for the provision which indicates that the person has affirmatively agreed to the provision. Without the authorization, the provision is void and unenforceable; however collective bargaining agreements, wills and trust instruments are exempt from this provision. NRS 597.995

Nevada favors arbitration as a means to avoid the generally higher costs and time associated with litigation. D.R. Horton, Inc. v. Green, 120 Nev. 549, 553, 96 P.3d 1159 (2004). However, courts may invalidate arbitration clauses if they are deemed unconscionable. Id. Both procedural and substantive unconscionability must exist in order to invalidate an arbitration clause. Id. A clause is procedurally unconscionable if the party challenging the clause lacked a “meaningful opportunity to agree. Id. at 554. Substantive unconscionability exists if the clause is “one-sided.” Id.