§ 7321.7. Validity of agreement to arbitrate.

277 words·~1 min read·/pa/title-42/chapter-73/7321-7

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

(a)General rule.-- An agreement contained in a record to submit to arbitration any existing or subsequent controversy arising between the parties to the agreement is valid, enforceable and irrevocable except upon a ground that exists at law or in equity for the revocation of a contract.

(b)Court decision.-- The court shall decide whether an agreement to arbitrate exists or a controversy is subject to an agreement to arbitrate.

(c)Arbitrator decision.-- An arbitrator shall decide whether a condition precedent to arbitrability has been fulfilled and whether a contract containing a valid agreement to arbitrate is enforceable.

(d)Challenge to arbitration.-- If a party to a judicial proceeding challenges the existence of, or claims that a controversy is not subject to, an agreement to arbitrate, the arbitration proceeding may continue pending final resolution of the issue by the court, unless the court otherwise orders.

(e)Grounds for validity and enforceability.--

(1)Subject to paragraph (2), in determining the validity and enforceability of an agreement to arbitrate, a court may consider any grounds that exist at law or in equity for the revocation of a contract, regardless of whether arising out of Federal or State law or as a matter of public policy, that are applicable to other contracts, including fraud, duress, coercion, unconscionability or the imposition by a contract of adhesion of any requirement that unreasonably favors the party that imposed the provision.

(2)Paragraph

(1)shall not apply in any manner prohibited by 9 U.S.C. (relating to arbitration) or other Federal law.

42c7321.7v

Cross References. Section 7321.7 is referred to in sections 7321.5, 7342 of this title.

42c7321.8s