Binding arbitration clauses in long-term care facility contracts. The Federal Arbitration Act ("FAA") as conceived in 1925 was intended to facilitate.The Act was passed in 1925 to remedy three problems: 1. Long before this Article's germination, Professor David Schwartz quipped that the Federal Arbitration Act (FAA) "is unconstitutional . A statute enacted in 1925 that provides the basic legal principles applicable to arbitration in the US (9 USC Ā§Ā§ 1-16; 9 USC Ā§Ā§ 201-208; 9 USC Ā§Ā§ 301-307). The court of appeals reversed, concluding that the Receiver is subject to the arbitration agreement in the Lease, and we granted review.