Under Orthodox Jewish practice, a Jew is not supposed to sue another Jew in secular courts. Instead, they are to arbitrate their disputes before a Beth Din, which is an arbitration panel of rabbis. In order ensure that the parties will follow this rule an arbitration clause is included in a contract. Most of these are extremely basic. The Beth Din of America, in its sample arbitration provision simply states that any controversy arising out of the contract shall be settled before the Beth Din of America in accordance with their rules and that any award may be entered in any court having jurisdiction. Apparently the assumption is that anyone entering into this agreement knows what a Beth Din is. At least in New Jersey, this clause and others like it is invalid and unenforceable.
