Federal Arbitration Act (FAA)

On February 20, 2008, in an 8-1 decision, the United States Supreme Court decided the case of Preston v. Ferrer, holding that the Federal Arbitration Act (FAA) supersedes state laws that would make administrative agencies the first stop for determining issues arising under an FAA-governed contract. In other words, when parties agree to arbitrate disputes arising under an FAA-governed contract, no state can require them to submit their contract-based dispute to a government agency instead of arbitration.

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