Under the FAA, an arbitrator's decision binds the parties unless the arbitration or the arbitrator was fundamentally unfair. All fifty US states and the District of Columbia have enacted arbitration laws of their own to address issues that the FAA does not address. The FAA consists of three chapters.
A court may vacate an award only if it finds that one of the limited grounds in the FAA (9 USC section 10) applies, namely: the award is a result of corruption or fraud; there was evident partiality or corruption by an arbitrator; there was arbitrator misconduct; or.
Generally, disputes in rem which are regarding a thing or property can't be resolved through arbitration, while disputes in personam regarding a selected person are often.
To vacate an award, the arbitrators must have known of a governing legal principle yet refused to apply it or ignored it, and the law ignored by the arbitrators must be clearly defined.
Employers should adapt their agreements ingly by excluding claims related to sexual assault and harassment from arbitration agreements. Similarly, employers should not attempt to include arbitration as it pertains to workers' compensation and unemployment compensation claims.
The following matters shall be excluded from arbitration under this Agreement: (i) any disputes involving third Persons; (ii) breach of confidentiality by either Party; and (iii) intellectual property claims, whether initiated by third Persons or by one of the Parties to this Agreement.
The Federal Arbitration Act (“FAA”) broadly requires courts to enforce arbitration agreements but exempts from its application arbitration “contracts of employment of seamen, railroad employees, or any other class of workers engaged in foreign or interstate commerce.” 9 U.S.C. § 1.
Notably, most provisions of the Federal Arbitration Act do not apply to contracts of employment of seamen, railroad employees, or any other class of workers engaged in foreign or interstate commerce .
883, enacted February 12, 1925, codified at 9 U.S.C. ch. 1), more commonly referred to as the Federal Arbitration Act or FAA, is an act of Congress that provides for non-judicial facilitation of private dispute resolution through arbitration.