With seventeen states completely legalizing recreational cannabis use and many other states having legalized it for medical use or at least having decriminalized it, it is no surprise that the cannabis industry is growing, and with its growth comes a need for laws regulating it. Despite these changes in state law, cannabis is still an illegal drug on the federal level, classified as a “Schedule I” drug under the Controlled Substances Act. Of course, this dichotomy in the law creates federalism concerns and problems for those in the cannabis industry when they attempt to access the courts for relief in the case of a dispute. Further, a general rule in contract law is that an agreement illegal on its face should not be enforced by the courts. To resolve these issues, the commercial cannabis industry has turned to arbitration as a solution.
This post was originally published on the Cardozo Journal of Conflict Resolution website on February 13, 2022. The original post can be accessed via the Archived Link button above.
Frydman, Steven, "Arbitration as a Solution to Commercial Cannabis Contract Clashes" (2022). CJCR Blog. 24.