An $80,000 residential remodel contract contains both a binding arbitration clause and a separate mandatory mediation clause. Under B&P §7191, the MEDIATION clause must:
Explanation
By its terms §7191 regulates 'a provision for arbitration of a dispute'. The special title, the 10-point roman boldface (or 8-point contrasting red), the capitalized NOTICE and the separate initials all attach to arbitration, because arbitration is what waives the owner's right to a court or jury trial, to discovery and to appeal. A mediation clause waives none of that — mediation is a non-binding settlement conference — so no §7191 formatting attaches to it. (a) is the usual misreading, treating the rule as covering any alternative-dispute clause. (b) invents a filing step; the Board does not review private contracts. (d) invents a signature rule; §7191(b) speaks of the parties to the contract, not of everyone on title.
Law Reference: Bus. & Prof. Code §7191(a)-(c)This topic, taught in full in the CSLB Law & Business guide. CSLB Law & Business — Complete Study Guide (2026) — PDF + EPUB, $24.99 · 14-day refund →
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