What is the Federal Arbitration Act?
The Federal Arbitration Act (FAA) is a federal law that was enacted in 1925 to promote the enforcement of arbitration agreements in the United States. The law is intended to ensure that agreements to arbitrate disputes are treated as valid, irrevocable, and enforceable contracts. Under the FAA, an arbitration agreement is only enforceable if it is in writing and made by the parties to a dispute before the dispute arises. The FAA applies to both state and federal courts located in the United States, including Virginia. In Virginia, the FAA is codified in the Virginia Code. This means that state courts must recognize and enforce arbitration agreements just as they would any other contract made within the state. However, the FAA does not apply to every arbitration agreement. Courts in Virginia are limited in their ability to enforce arbitration agreements related to certain rights, such as the right to a jury trial or certain labor laws. The FAA is intended to continue the trend of encouraging parties to resolve their disputes through arbitration, rather than through formal court proceedings. To that end, the law is designed to ensure that arbitration agreements are treated as valid contracts, and that those contracts are enforced. In Virginia, the FAA is codified in the Virginia Code, meaning that the state must recognize and enforce arbitration agreements just as it would any other contract made within the state.
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