What is the difference between the Federal Arbitration Act and state arbitration law?
The Federal Arbitration Act (FAA) and state arbitration law both involve the use of an arbitrator to resolve disputes without going to court. The difference between the two is that the FAA is a federal law that applies across the United States, while state arbitration law only applies within the individual states. In the District of Columbia, like all states, the Federal Arbitration Act provides the general framework for arbitration. That means it sets the overall standards for arbitration — such as how an arbitrator is appointed, what rules they must follow, and how the arbitration process proceeds. It also includes several provisions that favor arbitration over a court trial. In addition to the FAA, the District of Columbia has its own state-level arbitration law, which can supplement or modify the FAA. This includes specifics like which disputes can be subject to arbitration, how arbitration can be used in certain family law cases, and even provisions that give arbitrators certain powers, like the ability to set pre-arbitration procedural rules. This state-level law also means that the District of Columbia can offer arbitration services that are tailored to local needs, like specialized arbitration panels or special arbitration procedures. In sum, the Federal Arbitration Act provides the general rules for using arbitration, while state arbitration law provides additional details about how arbitration applies in the District of Columbia.
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