Federal Arbitration Act

The Federal Arbitration Act (FAA) is a U.S. law enacted in 1925 that supports arbitration as a way to resolve disputes outside of court. Arbitration is a process where parties agree to submit their disagreements to a neutral third party, known as an arbitrator, who makes a binding decision. The FAA makes arbitration agreements enforceable, meaning that if parties choose arbitration, they generally cannot go to court for those issues. The law aims to provide a faster, more efficient way to resolve disputes, and promotes the idea that private agreements to arbitrate should be respected.