Binding arbitration clauses in long-term care facility contracts. The Federal Arbitration Act ("FAA") as conceived in 1925 was intended to facilitate.The Federal Arbitration Act or FAA, is an act of Congress that provides for non-judicial facilitation of private dispute resolution through arbitration. 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 only exception currently present in the Supreme Court's ruling in favor of the Federal Arbitration Act is toward transportation employees. The Federal Arbitration Act is a United States federal statute enacted in 1925 that governs arbitration in contracts implicating interstate commerce. The Federal Arbitration Act ("FAA"), 9 U.S.C. § 1, et seq. 13 Because the application of either. Employmentrelated arbitration agreements have, under the Federal Arbitration Act (FAA), long been considered generally enforceable. Justice Neil Gorsuch said that the 1925 Federal Arbitration Act trumps the National Labor Relations Act.