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H.R. 2882 (105th): Fairness and Voluntary Arbitration Act of 1998

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The text of the bill below is as of Nov 7, 1997 (Introduced). The bill was not enacted into law.

HR 2882 IH

105th CONGRESS

1st Session

H. R. 2882

To amend chapter 1 of title 9 of the United States Code to permit each party to certain contracts to accept or reject arbitration as a means of settling disputes under the contracts.

IN THE HOUSE OF REPRESENTATIVES

November 7, 1997

Mr. BONO introduced the following bill; which was referred to the Committee on the Judiciary

A BILL

To amend chapter 1 of title 9 of the United States Code to permit each party to certain contracts to accept or reject arbitration as a means of settling disputes under the contracts.

    Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ‘Fairness and Voluntary Arbitration Act of 1998’.

SEC. 2. ELECTION OF ARBITRATION.

    (a) SALES AND SERVICE CONTRACTS- Chapter 1 of title 9 of the United States Code is amended by adding at the end thereof the following new section:

‘Sec. 17. Sales and service contracts

    ‘(a) For purposes of this section, the term ‘sales and service contract’ means a contract under which any person (including any manufacturer, importer or distributor) sells any product to any other person for resale to an ultimate purchaser and authorizes such other person to repair and service such product.

    ‘(b) Whenever a sales and service contract provides for the use of arbitration to resolve a controversy arising out of or relating to the contract, each party to the contract shall have the option, after the controversy arises and before both parties commence an arbitration proceeding, to reject arbitration as the means of settling the controversy. Any such rejection shall be in writing.

    ‘(c) Whenever arbitration is elected to settle a dispute under a sales and service contract, the arbitrator shall provide the parties to the contract with a written explanation of the factual and legal basis for the award.’.

    (b) TABLE OF CONTENTS- The table of contents for chapter 1 of title 9, United States Code, is amended by adding at the end thereof the following new item:

      ‘17. Sales and service contracts.’.

SEC. 3. EFFECTIVE DATE.

    The amendments made by section 2 shall apply to contracts entered into, amended, altered, modified, renewed, or extended after the date of the enactment of this Act.