Chapter 21. Arbitration and Award · Article 3. Arbitration Fairness Act · Last amended 2026 · Last verified July 16, 2026
In one sentenceThis section defines the terms that anchor the Arbitration Fairness Act — consumer, drafting party, neutral arbitrator, pre-dispute arbitration agreement, and, most importantly, “high-volume arbitration service provider,” a provider that handles more than one hundred Virginia-connected pre-dispute arbitrations a year and therefore triggers the article’s stricter rules.
Full Text of § 8.01-581.017
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As used in this article, unless the context requires a different meaning:
"Arbitration service provider" means any person or entity that administers, facilitates, or provides arbitration services in the Commonwealth.
"Consumer" means an individual who seeks, uses, or acquires, by purchase or lease, any goods or services for personal, family, or household purposes.
"Drafting party" means the company or business that included a pre-dispute arbitration provision in a contract with a consumer or employee. "Drafting party" includes any third party relying upon or otherwise subject to the arbitration provision other than the employee or consumer.
"High-volume arbitration service provider" means any arbitration service provider that conducts more than 100 arbitrations per calendar year that arise from a pre-dispute arbitration agreement involving a Virginia-connected transaction.
"Neutral arbitrator" means an arbitrator who is (i) selected jointly by the parties or by the arbitrators selected by the parties or (ii) appointed by the court when the parties or arbitrators selected by the parties fail to select an arbitrator jointly.
"Pre-dispute arbitration agreement" means an agreement to arbitrate a dispute between a consumer and a business or between an individual employed in the Commonwealth and that individual's employer that had not yet arisen at the time of making such agreement.
"Virginia-connected transaction" means any transaction, agreement, or dispute that arises out of, relates to, or is otherwise connected with activities, relationships, or events occurring within the Commonwealth, including any arbitration ordered by a state or federal court located in the Commonwealth.
Plain-English Summary
This section builds the vocabulary the rest of the Arbitration Fairness Act depends on, and one definition in particular does most of the work: “high-volume arbitration service provider.” A provider crosses that line once it conducts more than one hundred arbitrations a year arising from a pre-dispute arbitration agreement tied to a Virginia-connected transaction. Cross that threshold, and the selection-process, reporting, and procedural rules in the rest of the article kick in.
Other definitions shape who the article protects and against whom. A “consumer” is someone acquiring goods or services for personal, family, or household use. The “drafting party” is the company or business that put the pre-dispute arbitration clause into the contract in the first place — including any third party that later relies on that clause. A “pre-dispute arbitration agreement” is specifically one signed before any dispute existed, covering future disagreements between a consumer and a business, or between a Virginia employee and an employer.
The article also defines “neutral arbitrator” as one chosen jointly by the parties, or by court appointment if the parties cannot agree, and “Virginia-connected transaction” broadly, covering anything connected to activities, relationships, or events in the Commonwealth, including arbitrations a Virginia state or federal court has ordered.
Frequently Asked Questions
What makes an arbitration service provider “high-volume” under this article?
Conducting more than 100 arbitrations per calendar year that arise from a pre-dispute arbitration agreement involving a Virginia-connected transaction.
What is a “pre-dispute arbitration agreement”?
An agreement to arbitrate a dispute between a consumer and a business, or between an individual employed in the Commonwealth and that individual’s employer, that had not yet arisen at the time the agreement was made.
Who counts as a “drafting party”?
The company or business that included a pre-dispute arbitration provision in a contract with a consumer or employee, including any third party relying on or otherwise subject to that arbitration provision, other than the employee or consumer.
How is a “neutral arbitrator” chosen under this definition?
Either selected jointly by the parties or by the arbitrators the parties selected, or appointed by the court when the parties or their arbitrators fail to select one jointly.
What qualifies as a “Virginia-connected transaction”?
Any transaction, agreement, or dispute that arises out of, relates to, or is otherwise connected with activities, relationships, or events occurring within the Commonwealth, including any arbitration ordered by a Virginia state or federal court.
Amendment History
2026, c. 490.
Source & verification. Section text and amendment history are
reproduced verbatim from the Code of Virginia, published by the
Code of Virginia, Virginia Division of Legislative Automated Systems. Last verified July 16, 2026.
· Official source
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