Question: The Amundsens contracted with Wright, doing business as J. Wright Homes, to build a house for them. The Residential Construction Contract contained an arbitration clause

The Amundsens contracted with Wright, doing business as J. Wright Homes, to build a house for them. The Residential Construction Contract contained an arbitration clause in which the parties agreed to submit any and all disputes that might arise between them to binding arbitration pursuant to the "procedures established and maintained by the Central Oklahoma HomeBuilder's (sic) Association." As it later turned out, however, the Central Oklahoma Home Builders Association does not have, and has never had, procedures established for arbitration. In other words, the specific arbitration procedures agreed to by the Amundsens and Wright did not exist. A dispute arose between the parties and the Amundsens filed suit against Wright. Wright filed a motion to compel arbitration, based on the arbitration clause in the contract. Will the arbitration clause be enforced?

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No The main legal issue was whether an objective or subjective standard of satisfaction should apply ... View full answer

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