What’s the meaning of this sentence:
No failure to agree on any action pursuant to Section 7.2 shall give rise to a dispute subject to arbitration.
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Please edit the question to limit it to a specific problem with enough detail to identify an adequate answer. Avoid asking multiple distinct questions at once. See the How to Ask page for help clarifying this question. - From Review– LordologyMar 2, 2019 at 9:44
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1 Answer
If (the parties to the contract] can't agree about what they should do under section 7.2 [of this contract], their disagreement is not something which can be resolved by arbitration.
answered Mar 1, 2019 at 22:14
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Yes, though I think that which must be resolved is more in the spirit here. The clause attempts to free the contractants from any requirement for compulsory arbitration. Mar 1, 2019 at 23:14
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1I would hesitate to proffer a legal interpretation, especially where only one sentence of a document is quoted.– WS2Mar 1, 2019 at 23:41
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Yeah, understand that anything stated here is purely an attempt to interpret the English semantics, not apply whatever legal interpretations of the clauses may have built up over the years. For instance, the Watchenheimer precedent of 1963 may apply, requiring both parties to tap dance and stand on their heads in such cases. We just don't know. Mar 2, 2019 at 13:09
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@JohnLawler I'm pretty sure that such a provision would compel an arbitrator to refuse to hear any cause brought under 7.2. Its purpose seems to be to take claims of "unfairness" or "unconscionability" out of an arbitrator's jurisdiction and into that of the civil courts.It seems to be used mostly in contracts for services to public agencies. Mar 2, 2019 at 15:31