The ruling reaffirmed the preemptive effect of the Federal Arbitration Act ("FAA"), codified at 9 USC § 1 et seq. The Supreme Court of the United States held in Kindred Nursing Centers, LP v.The Federal Arbitration Act or FAA, is an act of Congress that provides for non-judicial facilitation of private dispute resolution through arbitration. Legal Sidebari Ninth Circuit Rules That Federal Arbitration Act Preempts California's Ban on Employer Mandated Arbitration Agreements Held: The Kentucky Supreme Court's clearstatement rule violates the. Employees or job applicants to agree to resolve certain disputes in binding arbitration instead of in court. The Federal Arbitration Act (FAA) requires courts to place arbitration provisions on an equal footing with other contract terms. The opinion took note of, and rejected, some of the tactics used to invalidate vested, federally protected arbitration rights. Does Chapter 1 of the Federal Arbitration Act apply in state court? The Federal Arbitration Act ("FAA"), 9 U.S.C. § 1, et seq.