A statute enacted in 1925 that provides the basic legal principles applicable to arbitration in the US (9 USC §§ 1-16; 9 USC §§ 201-208; 9 USC §§ 301-307). The Federal Arbitration Act or FAA, is an act of Congress that provides for non-judicial facilitation of private dispute resolution through arbitration.Binding arbitration clauses in long-term care facility contracts. The Federal Arbitration Act ("FAA") as conceived in 1925 was intended to facilitate. 2.3 FEDERAL AND OUT-OF-STATE DECISIONS. The Federal Arbitration Act is a federal statute, codified at 9 USC §§ 1-16, that protects the integrity of many arbitration agreements. Longstanding federal policies embodied in the securities laws. Federal Arbitration Act.