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. The FAA applies to any contract "evidencing a transaction involving commerce" that is subject to a written agreement to arbitrate. Under the Federal Arbitration Act (FAA), arbitration agreements are "valid, irrevocable, and enforceable. Lesson Plan: Can One Man Make a Difference? . . . And for Whom?? Throughout the course.