Block, SkipCaptcha, Automoderated users, edit, rollback
3,135
edits
Changes
Jump to navigation
Jump to search
Line 1:
Line 1: + +
add paragraph explaining the FAA
'''Arbitration''' is the hearing of a [[dispute]] by an [[neutral|impartial]] [[third person]] or persons (chosen by the parties), whose award/decision the parties agree to accept.
'''Arbitration''' is the hearing of a [[dispute]] by an [[neutral|impartial]] [[third person]] or persons (chosen by the parties), whose award/decision the parties agree to accept.
In the United States, arbitration pursuant to contracts involving [[interstate commerce]] is governed by the [[Federal Arbitration Act]] of 1925. The FAA requires courts to dismiss or stay a case when a party compels arbitration pursuant to a contract, unless the contract is invalid for reasons generally applicable to contracts, such as fraud, duress, or unconscionability (''[[Doctor's Associates, Inc. v. Casarotto]]'').
In consumer and employment contracts, arbitration agreements often include class-action waivers, requiring parties to seek relief on an individual basis only. In April 2011, the U.S. Supreme Court ruled that states like California could not refuse to enforce an agreement to arbitrate with a class-action waiver on the grounds that it would deny class relief (''[[AT&T Mobility v. Concepcion]]'').
In consumer and employment contracts, arbitration agreements often include class-action waivers, requiring parties to seek relief on an individual basis only. In April 2011, the U.S. Supreme Court ruled that states like California could not refuse to enforce an agreement to arbitrate with a class-action waiver on the grounds that it would deny class relief (''[[AT&T Mobility v. Concepcion]]'').
[[Category:Legal Terms]]
[[Category:Legal Terms]]