An arbitration or conciliation agreement is commercial if it arises out of a relationship of a commercial nature including, but not limited to, any of the following:
§ 1297.16.Relationships Making Agreement Commercial
Title 9.3. Arbitration and Conciliation of International Commercial Disputes · Chapter 1. Application and Interpretation · Article 1. Scope of Application · Enacted 1988 · no amendments on record · Last verified July 29, 2026
In one sentenceSection 1297.16 defines an arbitration or conciliation agreement as commercial if it arises from a relationship of a commercial nature, listing examples such as goods and services transactions, distribution, construction, insurance, licensing, financing, and professional services.
Full Text of § 1297.16
(a) A transaction for the supply or exchange of goods or services.
(b) A distribution agreement.
(c) A commercial representation or agency.
(d) An exploitation agreement or concession.
(e) A joint venture or other, related form of industrial or business cooperation.
(f) The carriage of goods or passengers by air, sea, rail, or road.
(g) Construction.
(h) Insurance.
(i) Licensing.
(j) Factoring.
(k) Leasing.
(l) Consulting.
(m) Engineering.
(n) Financing.
(o) Banking.
(p) The transfer of data or technology.
(q) Intellectual or industrial property, including trademarks, patents, copyrights and software programs.
(r) Professional services.
Plain-English Summary
Being international is only half of the gateway test; the underlying relationship also has to be commercial. This section defines that term broadly, covering any relationship of a commercial nature, and then lists a long set of examples so the definition does not stay abstract.
The list ranges widely: transactions for supplying or exchanging goods or services, distribution agreements, commercial representation or agency, exploitation agreements and concessions, joint ventures and other industrial or business cooperation, carriage of goods or passengers, construction, insurance, licensing, factoring, leasing, consulting, engineering, financing, banking, transfers of data or technology, intellectual and industrial property, and professional services. Because the list is introduced as examples rather than an exhaustive set, a relationship with a real commercial character can qualify even if it does not fit neatly into one of the named categories.
Frequently Asked Questions
What makes an arbitration agreement commercial under this title?
Arising out of a relationship of a commercial nature, illustrated by a broad list of examples including goods and services transactions, distribution, construction, insurance, licensing, financing, and professional services.
Is the list of commercial relationships in this section exhaustive?
No. The section introduces the list with "including, but not limited to," so relationships not specifically named can still qualify.
Does a joint venture count as a commercial relationship under this section?
Yes, joint ventures and other related forms of industrial or business cooperation are specifically listed.
Amendment History
Added by Stats. 1988, Ch. 23, Sec. 1. Effective March 7, 1988.
Source & verification. Section text is reproduced verbatim from
the Deering's California Codes Annotated / vLex. Enacted by the California Legislature.
Last verified July 29, 2026.
· Official source
Also known as: commercial relationship definition arbitration californiawhat counts as commercial arbitration agreement