ContractsIntermediateAlaska Exam

An Alaska purchase agreement provides that any disputes will be resolved through binding arbitration. This clause is:

AAutomatically void as contrary to Alaska public policy, under typical circumstances
BGenerally enforceable in Alaska, with the parties giving up their right to trialCorrect
COnly enforceable in commercial transactions
DRequired in all Alaska purchase agreements

Why Generally enforceable in Alaska, with the parties giving up their right to trial Is Correct

Answer B: Generally enforceable in Alaska, with the parties giving up their right to trial

Binding arbitration clauses in contracts are generally enforceable in Alaska. Parties who agree to arbitration waive their right to a jury trial and instead have disputes resolved by an arbitrator.

Exam Tip: Contracts

Contract questions frequently test the essential elements required for a valid contract. Remember: competent parties, mutual consent, lawful object, and sufficient consideration. Watch for void vs. voidable distinctions.

Key Contracts Terms in This Question

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