Commercial Arbitration Agreements and the Uniform Commercial Code

Abstract

Arbitration has become very important to the resolution of commercial disputes in the United States. The increasingly rapid growth in the use of commercial arbitration is almost certain to continue. Despite the trend toward judicial acceptance of arbitration, some courts misapply section 2-207 of the Uniform Commercial Code to nullify arbitration provisions in many commercial controversies. This article argues that many of the barriers to greater use of arbitration that courts draw from the Uniform Commercial Code are the result of misguided analysis. It suggests that the Code be amended to assure that courts interpret section 2-207 consistently with federal law governing arbitration in order to facilitate the continued growth of arbitration as a forum for resolving commercial disputes.