Common use of FEDERAL AUTHORITY Clause in Contracts

FEDERAL AUTHORITY. The FAA, codified in Title 9 of the United States Code, specifies the requisite components of an arbitration agreement and the procedural process by which courts will direct parties to arbitration. Section 2 of the FAA concerns matters of validity, irrevocability, and enforecement of agreements to arbitrate. It provides that a written provision in any contract evidencing a transaction inolving commerce to arbitrate a controversy shall be valid, irrevocable and enforceable, save upon such grounds as exist at law or in equity for the revocation of any contract.

FEDERAL AUTHORITY. The FAA, codified in Title 9 of the United States Code, specifies the requisite components of an arbitration agreement (federal, securities law claims too) and the procedural process by which courts will direct parties to arbitration. Section 2 of the FAA concerns matters of validity, irrevocability, and enforecement of agreements such to arbitrate. It provides that a written provision in any contract evidencing a transaction inolving involving commerce to arbitrate a controversy shall be valid, irrevocable and enforceable, save upon such grounds as exist at law or in equity for the revocation of any contract.