The Federal Arbitration Act or FAA, is an act of Congress that provides for non-judicial facilitation of private dispute resolution through arbitration. The court ruled that the Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act (EFAA) applies, which makes arbitration agreements unenforceable.In fact, the Federal Arbitration Act was adopted in 1925 and California followed with its first arbitration statute in 1927. 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.