WHAT IS Arbitration Agreement Rider

Hi Binoy,

Arbitration Agreement Rider is a clause contained in an arbitration provision. It means that any dispute arising out of or related to this Rider or clause will be settled by arbitration under the provision of the Federal Arbitration Act.

The arbitration provision includes the conditions and procedures according to which a claim can be arbitrated in court instead of being litigated.

Arbitration clause is used in contracts requiring involved parties to resolve disputes through a specific arbitration process. FAA (Federal Arbitration Act) allows for such arbitration in which right to appeal against the decision given by arbitrator in a court is given up by the parties.

Please also go through this page which explains more about arbitration clause - http://en.wikipedia.org/wiki/Arbitration_clause