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Arbitration clauses are common in home inspection contracts and have been useful historically. However, as states increasingly regulate standards of care, issues arise regarding the ability to appeal mistakes made concerning these standards. In arbitration, arbitrator decisions on law, evidence, and testimony are generally not appealable, except under very specific circumstances. The only way to contest an arbitrator's mistake of law is to prove fraud, which is extremely rare. This lack of appeal options is an important factor to consider when deciding whether to utilize arbitration clauses in contracts. It's also advisable to consult with legal counsel about these implications.
