The Position of the Courts on Arbitration Clauses - Essay Example

The position of the courts on arbitration clauses provide that if the dispute falls inside the scope of the contract the arbitration clause binds the parties. When the arbitration clause provides for arbitration on the dispute between the two parties, the clause binds them, and they must arbitrate. Where the rights of the parties stem from the contract then the arbitration clause is binding, and parties must arbitrate in such instances.The position held in the NCR Corp v Korala associates Ltd 2007 06-3685 (6th Cir.), where the court stated that the provisions of the arbitration clause are binding in claims relating to the contract.

Where the claim has a connection to the contract, the resolution of the dispute facilitated through arbitration (Miller & Jentz 2009). The outcome in Baker v Osborne, therefore, would provide for the parties to arbitrate on the claims. The arbitration clause in the contract provides for arbitration between the parties concerning any issues arising concerning the contract, the scope of the clause covers the current claim and, therefore, the new owners bound by the arbitration clause, and they should not use the company.