New York Law (NYLE) Practice Exam

What is required for a stay of arbitration according to the agreement made by Jasmine and Cole?

1. A. A mutual agreement in writing.

2. B. Serving notice of the condition precedent.

3. C. A motion to compel arbitration.

4. D. No conditions are necessary; a stay can be unilaterally requested.

The correct answer is: A. A mutual agreement in writing.

In the context of arbitration agreements, a stay of arbitration usually requires a mutual agreement between the parties involved. This mutual consent ensures that both parties are aligned regarding the postponement of the arbitration process. In many arbitration agreements, it is common for there to be stipulations that define how such stays are to be executed, and the most straightforward and legally sound method is through a written mutual agreement. By requiring a mutual agreement in writing, it addresses both parties' intentions clearly and formally, reducing ambiguity and potential disputes over the stay itself. This arrangement upholds principles of contract law, where mutual assent is a key component, thereby ensuring that both Jasmine and Cole acknowledge and agree to the postponement of arbitration proceedings. The other options, while relevant in other contexts or specific situations, do not encapsulate the generally accepted requirement for a stay in arbitration as effectively as a mutual written agreement. For example, simply serving notice of a condition precedent could lead to misunderstandings, and a motion to compel would typically be used to enforce arbitration rather than to stay it. Lastly, allowing a unilateral request for a stay would undermine the collaborative nature of arbitration as typically practiced.