Federal Arbitration Act

Federal arbitration act was legislated in the early 1925 and it was later amended in the year 1954 while chapter 10 of the act was amended in late 1990. This is an act of the Congress which provides for the judicial satisfaction and facilitation for a very private resolution for any disputes through arbitration. It is applied in both the federal and the state level courts. The act applies in cases where the actions and the transactions of the parties involve the predication and interstate commerce where the powers are given by the constitution to the Congress (Stone et al., 2015). The federal arbitration act gives a contractual based binding arbitration and which is compulsory that results to the award by the arbitrator compared to the judgment given by the courts.

After the award has been entered by the arbitrator, confirmation follows in a court and after confirmation; an award is termed or reduced to being a judgment that can be enforced by the party through the court just like any judgment. Through the federal arbitration act, the award has to be confirmed in a year or less and in case of any objections on an award; the challenge from the losing party must be presented within a period of three months. An arbitration agreement can be entered in advance in case of actual dispute or it can be entered once a dispute has come up with the disputing parties (Stone et al., 2015). The Supreme Court in a certain case gave a ruling that any grounds for judicial review which are quantified in the federal arbitration act cannot be changed even when the parties in the arbitration have agreed to have some changes on the decision.         

 

Reference

Stone, K. V. W., Bales, R. A., & Colvin, A. J. (2015). Arbitration law.