Formation of DRC & FAA Preemption

Question 1

Moses Cone

Answer 1

There is a federal preference for arbitration.

That preference is greater than the preference against piecemeal litigation.

Question 2

Marmet Health Care

Answer 2

FAA > State Law

When state law prohibits outright the arbitration of a particular type of claim, the FAA displaces it.

Question 3

Nguyen v. Barnes & Noble (9th Cir)

Answer 3

Court applied ordinary state law principles to decide whether a contract had been formed.

Question 4

Evaluating a DRC

Answer 4

Does it say arbitration?

Does it say shall?

Does it say “arising out of/relating to”? (otherwise background info isn’t included, e.g. fraud).