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Arbitration clauses are commonly found in home inspection contracts and have been helpful in the past. However, with more states moving towards regulation, having a legal standard of care has become an issue. If a mistake is made in applying this standard, it may not be appealable in arbitration. The arbitrator's decisions on law, evidence, testimony, etc. are typically not appealable, unless fraud is proven. This lack of appeal can be a significant factor in deciding whether to use an arbitration clause.
