Federal Arbitration Act

The United States Arbitration Act (Pub.L. 68–401, 43 Stat. 883, enacted February 12, 1925, codified at 9 U.S.C. ch. 1), more commonly referred to as the Federal Arbitration Act or FAA, is an act of Congress that provides for judicial facilitation of private dispute resolution through arbitration. It applies in both state courts and federal courts, as was held constitutional in Southland Corp. v. Keating. It applies where the transaction contemplated by the parties 'involves' interstate commerce and is predicated on an exercise of the Commerce Clause powers granted to Congress in the U.S. Constitution. The United States Arbitration Act (Pub.L. 68–401, 43 Stat. 883, enacted February 12, 1925, codified at 9 U.S.C. ch. 1), more commonly referred to as the Federal Arbitration Act or FAA, is an act of Congress that provides for judicial facilitation of private dispute resolution through arbitration. It applies in both state courts and federal courts, as was held constitutional in Southland Corp. v. Keating. It applies where the transaction contemplated by the parties 'involves' interstate commerce and is predicated on an exercise of the Commerce Clause powers granted to Congress in the U.S. Constitution. The FAA provides for contract based compulsory and binding arbitration, resulting in an arbitration award entered by an arbitrator or arbitration panel as opposed to a judgment entered by a court of law. In an arbitration, the parties give up the right to an appeal on substantive grounds to a court.