Commments: Preemption of State Law under the Federal Arbitration Act
Douglas M. Fox
Abstract
Open-access reader
Douglas M. Fox
Abstract
Open-access reader
The Federal Arbitration Act, in contrast to common law, makes arbitration agreements in contracts "evidencing a transaction involving commerce" valid and enforceable. Recent decisions of the United States Supreme Court mandate that the federal Act be applied in both federal and state courts. In this comment, the author traces the history of the federal Act and addresses the threshold question of what activities satisfy the commerce requirement. The author examines the inconsistencies that arise when the federal Act is applied in state courts and urges Congress to revise the Act in light of these inconsistencies. Finally, potential changes in Maryland commercial arbitration law are explored.
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The Federal Arbitration Act, in contrast to common law, makes arbitration agreements in contracts "evidencing a transaction involving commerce" valid and enforceable. Recent decisions of the United States Supreme Court mandate that the federal Act be applied in both federal and state courts. In this comment, the author traces the history of the federal Act and addresses the threshold question of what activities satisfy the commerce requirement. The author examines the inconsistencies that arise when the federal Act is applied in state courts and urges Congress to revise the Act in light of these inconsistencies. Finally, potential changes in Maryland commercial arbitration law are explored.
Key concepts: Preemption, Federal preemption, Arbitration, Law, Federal Arbitration Act, State (computer science), Political science, Business