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Arbitration clauses, commonly found in home inspection contracts, have been useful in the past. However, as more states introduce regulations, a legal standard of care is now in place. This raises concerns about the inability to appeal mistakes made in arbitration decisions. Without the option to appeal, the only way to challenge an arbitrator's decision is by proving fraud, which is rare. This lack of appeal process should be considered when deciding whether to include an arbitration clause in a contract. Checking with your legal advisor is also recommended.
