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Descriptive NoteThis sort of provision is generally neither required nor prohibited by law. Nonetheless, it is advisable to consult with legal counsel before determining the means, if any, for resolving disputes. Some states and other jurisdictions, for example, may be prohibited by law from consenting to binding arbitration as a dispute resolution mechanism.
Agreeing to informal resolution:
- Should disagreement arise on the interpretation of the provisions of this Agreement that cannot be resolved at the operating level, the area(s) of disagreement shall be stated in writing by each Party and presented to the other Party for consideration. If agreement on interpretation is not reached within thirty days, the Parties shall forward the written presentation of the disagreement to respective higher officials for appropriate resolution.
- In the event that a dispute arises under this Agreement, the Parties will make every effort to resolve the disagreement at the lowest organizational level. If those efforts are not successful, the Parties will seek input from their next higher decision-making authority. Unresolved disputes shall be brought before a Dispute Board, composed of one member appointed by each Party. The Dispute Board shall review the facts, applicable statutes and rules, and make a determination regarding the dispute. The Parties agree to abide by the Dispute Board determination.
- Should a dispute arise between Parties, involved Parties will make every effort to resolve the dispute within 30 days of written notice of the dispute by the party asserting noncompliance. In the event that the dispute is not resolved within 90 days of the written notice, a Party may request the dispute be resolved through arbitration. Arbitration under this provision shall be conducted under the commercial arbitration rules of the American Arbitration Association.
- In the event of a breach of this Agreement, the remedy will be the right to terminate this Agreement, in whole or in part, by any Party without penalty of cost or expenses associated with breach.