Arbitration Act Essay

1016 Words5 Pages
This report is set to outline and highlight key developments in a very important piece of law “Federal Arbitration Act” which is also commonly known as FAA. In order to look at the FAA in detail which was developed in late 1925, first let’s see what the word Arbitration mean. In simple words, Arbitration is known be to a very informal, private and isolated process in which all participating parties agree to hand in their disputes and problems in writing to one or more independent parties who are sanctioned to resolve the problem or issue. If someone ask you a question to define the act of Arbitration or what does it mean, most of us will have one of the following opinion: • It is a system which helps private lawsuit ascending for various kind of business disagreements. • A simple instrument remove or improve workplace tensions between the management or the employer and their employees. • It is also known as a process by which big financial institutions (banks, Insurance companies) and different stock brokers protect themselves from harsh client grievances. • A way to equal the playing field in decisive marketable disagreements among different multi-national organisations who are operating in different part of the world (Blankley, 2005). As mentioned above briefly that FAA was initially developed in 1925, but until 1959 it has only been use in five cases, which was a big surprise to most of the lawmen. All the people who were familiar with the act projected that it would be a big success and FAA would be used on regular basis. However, in the later part of twentieth century there were various Supreme Court verdicts which were later changed from “quaint . . . procedural statute” into a “national regulatory statute”. In simpler te... ... middle of paper ... ...nancial. However, as set out by the Court in Allied-Bruce and Southland Corp the FAA confines the level to which any given state court and statue can circumvent the specified purpose of the Act and limit the rights of involved parties who have arrived into arbitration arrangements (Hayford, 2000). To conclude, FAA is an intensive set of status which has been used in US and in many other countries over last few decades. It did have a fair amount of criticism when it was being developed and used back in 1930s. But over the span of last few years FAA has helped many business and organisations to reach to an agreeable arrangement not just on a national level but on a global level. More and more businesses are considering using FAA whenever they have dispute with their competitors or partners. FAA is a significant piece of legislation and it has been working very well.

More about Arbitration Act Essay

Open Document