ARBITRATION

I represent a home building company. They want to begin using an addendum to all of their contracts which provides for binding arbitration in all disputes arising out of their warranty agreements. Do you know of any reason this would be a problem in Tennessee ?

I don't think there should be a problem. I note, however, that the Tennessee arbitration statute requires arbitration agreements to be separately initialed when residential property is the subject matter. If interstate commerce is involved then federal law preempts this provision, but I'd add blanks for initials to my form.