Check the Arbitral Organization’s Rules Before Agreeing to Arbitrate

Short summary

The Seventh Circuit ruled companies aren't required to use chosen arbitration forums if they fail to comply with those organizations' procedural rules. In Bernal v. Kohl's, the AAA declined arbitration when Kohl's failed to register as required by Consumer Arbitration Rules. Arbitration clauses are only effective if both parties understand and commit to their forum's specific registration and fee requirements or risk losing access to either arbitration or court.

• •Seventh Circuit ruled companies cannot be forced into arbitration if they violate their chosen forum's procedural rules
• •Kohl's case: AAA declined arbitration after Kohl's failed to register per Consumer Arbitration Rule 12
• •Arbitration agreements are hollow without understanding the selected organization's specific compliance and fee requirements

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