Review Under the Federal Arbitration Act

Cite this article as: Jason Mance Gordon, "Review Under the Federal Arbitration Act," in The Business Professor, updated January 7, 2015, last accessed March 30, 2020, https://thebusinessprofessor.com/knowledge-base/review-under-the-federal-arbitration-act/.
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Review under Federal Arbitration Act
This video explains the process of judicial review of arbitrations conducted pursuant to the Federal Arbitration Act.

Next Article: Enforcing Arbitration Awards

Back to: ALTERNATIVE DISPUTE RESOLUTION

What is Review Under the Federal Arbitration Act?

In cases involving federal matters, the Federal Administration Act controls the procedures. The procedures of the FAA are binding upon both state and federal courts when called upon to review an arbitration. Once an award is entered by an arbitrator or arbitration panel, it must be “confirmed” in a court of law. Per the FAA, awards must be confirmed within one year. A losing party must object and challenge the award within three months.

  • Note: As a federal law, the FAA trumps state statutes that conflict with its provisions. For example, the FAA trumps state laws that allow for challenge of arbitration awards in a manner that differs from the provisions of the FAA.

Discussion: Do you think that the provisions of the FAA requiring a court to confirm an arbitration award make the arbitration process more fair? Why or why not? Do these provisions help to ensure the mandatory arbitration statute observes Constitutional rights? Why or why not?

Practice Question: Erica is a party to an arbitration under the Federal Arbitration Act. She prevails over Joseph receives an award from the arbitrators. Does Joseph have any options to challenge the award?

Proposed Answer

  • Erica must enter the arbitration award into the court for enforcement within one your of the arbitrator’s award. Joseph has 3 months from the date of entry to challenge the award. If he does not do so, the award will be confirmed and enforceable. If he challenges the award under a contract theory for voluntary arbitration or reject the award in a mandatory arbitration.

Academic Research

Frankel, Richard, The Federal Arbitration Act and Independent Contractors (August 28, 2018). Cardozo Law Review, Forthcoming; Drexel University Thomas R. Kline School of Law Research Paper No. 2018-A-07. Available at SSRN: https://ssrn.com/abstract=3240163

Plass, Stephen A., Reforming the Federal Arbitration Act to Equalize the Adjudication Rights of Powerful and Weak Parties (September 9, 2016). Catholic University Law Review, Vol. 65, No. 79, 2015. Available at SSRN: https://ssrn.com/abstract=2837040

Sebok, Anthony J., The Unwritten Federal Arbitration Act (October 28, 2016). DePaul Law Review, Vol. 65, 2016; Cardozo Legal Studies Research Paper No. 505. Available at SSRN: https://ssrn.com/abstract=2860765

Horton, David, Arbitration About Arbitration (March 19, 2017). Stanford Law Review, Vol. 70, February 2018. Available at SSRN: https://ssrn.com/abstract=2937502

Plass, Stephen A., Reforming the Federal Arbitration Act to Equalize the Adjudication Rights of Powerful and Weak Parties (September 9, 2016). Catholic University Law Review, Vol. 65, No. 79, 2015. Available at SSRN: https://ssrn.com/abstract=2837040

Friedman, Stephen E., The Lost Controversy Limitation of the Federal Arbitration Act (June 21, 2012). University of Richmond Law Review, Vol. 46, No. 4, 2012; Widener Law School Legal Studies Research Paper No. 12-23. Available at SSRN: https://ssrn.com/abstract=2088890

Schwartz, David S., The Federal Arbitration Act and the Power of Congress Over State Courts. Oregon Law Review, Vol. 83, No. 541, 2004; Univ. of Wisconsin Legal Studies Research Paper Archival Collection. Available at SSRN: https://ssrn.com/abstract=1492304

Perlstadt, Roger, Article III Judicial Power and the Federal Arbitration Act (August 10, 2012). 62 American University Law Review 201 (2012). Available at SSRN: https://ssrn.com/abstract=2112500

Blankley, Kristen, A Uniform Theory of Federal Court Jurisdiction Under the Federal Arbitration Act (2016). George Mason Law Review, Vol. 23, No. 3, 2016. Available at SSRN: https://ssrn.com/abstract=2789953

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