Federal Arbitration Act

Question 1

What is the savings clause in the Federal Arbitration Act?

Answer 1

The savings clause in the FAA allows courts to refuse to enforce arbitration agreements only for “generally applicable contract defenses, such as fraud, duress or unconscionability.”

AT&T Mobility LLC (U.S. 2011) Ex. Epic Systems case - Interference with one’s abilitity to file a class or collective action is not a defense applicable to contracts in general.

Question 2

What is the significance of the FAA being enacted before the NLRA?

Answer 2

There is a presumption that if Congress intends a later enacted statute to impact pre-existing law it will be clear about its intent.