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U.S. Code as of:
01/03/05
Section 575. Authorization of arbitration
(a)(1) Arbitration may be used as an alternative means of dispute
resolution whenever all parties consent. Consent may be obtained
either before or after an issue in controversy has arisen. A party
may agree to -
(A) submit only certain issues in controversy to arbitration;
or
(B) arbitration on the condition that the award must be within
a range of possible outcomes.
(2) The arbitration agreement that sets forth the subject matter
submitted to the arbitrator shall be in writing. Each such
arbitration agreement shall specify a maximum award that may be
issued by the arbitrator and may specify other conditions limiting
the range of possible outcomes.
(3) An agency may not require any person to consent to
arbitration as a condition of entering into a contract or obtaining
a benefit.
(b) An officer or employee of an agency shall not offer to use
arbitration for the resolution of issues in controversy unless such
officer or employee -
(1) would otherwise have authority to enter into a settlement
concerning the matter; or
(2) is otherwise specifically authorized by the agency to
consent to the use of arbitration.
(c) Prior to using binding arbitration under this subchapter, the
head of an agency, in consultation with the Attorney General and
after taking into account the factors in section 572(b), shall
issue guidance on the appropriate use of binding arbitration and
when an officer or employee of the agency has authority to settle
an issue in controversy through binding arbitration.
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