The Federal Arbitration Act is a federal statute, codified at 9 USC §§ 1-16, that protects the integrity of many arbitration agreements. Contact Information.Passed in 1925, the Federal Arbitration Act ("FAA") intended to curtail the expenses and delay of judicial proceedings. 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). Arbitration is a form of alternative dispute resolution that allows for the resolution of disputes outside of the court system. These agreements require any employee dispute to be settled through an arbitration process outside of court.