@Konrad Lightner . I am not an attorney and this should not be taken as legal advice but as a guide to better understand your options coming from a small business owner perspective. It really depends on the specific language within the clause and really should be looked at by an attorney. Is the clause for Arbitration or Mediation? Both are typically cheaper and quicker but the clause tends to favor whoever wrote the clause(they have their best interest at heart by default) as they define the terms within the clause. The major difference is Arbitration is legally binding while Mediation is not. Meaning Arbitration is typically upheld and more enforceable in court where as if mediation fails you can go to court to try to get a more favorable outcome. The language in an arbitration clause needs to be very specific with defined terms for, among other things, who is the arbitrator and how long can the arbitration go on, who pays for the arbitration, etc. It can make a significant difference. Vague language can nullify the clause if it establishes no guidelines to follow.
If you are going to sign a clause you need to make sure it is written in your favor or as neutral as possible.
www.adr.org is the american arbitration association website which can walk you through the proper steps to setting up the clause and finding a neutral arbitrator(soooooo important!)
Obviously, we hope to never encounter any form of legal action but it is best to have the path as clearly defined as possible if we do. Never assume someone(they seem nice but when in a dispute things change) will do something a certain way unless it is specifically defined in writing!
Best of luck!
John
