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As a form of alternative dispute resolution, arbitration proceedings can either be binding or non-binding. The former simply means the decision is final and enforceable, while the latter that the arbitrator's ruling is advisory and can only be applied if both parties agree to it.
Is arbitration legal? Yes. The Federal Arbitration Act, or FAA, was passed in 1925 in response to a variety of court decisions that held arbitration agreements unenforceable. This law provides that arbitration agreements are generally valid and enforceable.
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In California, employers cannot require employees to agree to arbitration agreements as a condition of employment, but employees may voluntarily agree to do so.
Who Can Arbitrate Disputes? Arbitration can be voluntary (the parties agree to do it) or mandatory (required by law). Most contract arbitration occurs because the parties included an arbitration clause requiring them to arbitrate any disputes "arising under or related to" the contract.
So, when faced with disputes, parties can in almost all instances, agree to submit their disputes to arbitration, even when an arbitration clause was not included in the underlying contract, if any. Existing litigation can be moved to arbitration by the agreement of the parties.
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 in Southland Corp.
When there is no express arbitration agreement between the parties as regards to reference of disputes for arbitration, the court cannot refer the parties to arbitration unless there's a written consent by parties by way of joint application or a joint memo or a joint affidavit.
The Puerto Rico Arbitration Act (PRAA), which applies to any dispute that two or more parties agree in writing to submit to arbitration, except for labor disputes (P.R. Laws Ann. tit 32, ? 3201 to 3229; see Autoridad Sobre Hogares de P.R.
As respects whether a contract evidences a transaction involving commerce (Part C), the U.S. Supreme Court has interpreted Section 2 broadly to mean the Federal Arbitration Act applies to arbitration agreements in contracts or transactions that affect commerce, that is, to any contract or transaction that