Arbitration is a private contractual process that parties can agree to in advance to resolve disputes outside of the courtroom. It is not required by the Federal Arbitration Act, nor is it always preferable to litigation. While certain types of contracts may prohibit arbitration clauses, it is generally allowed in interstate commerce contracts.

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Arbitration Is

Question 119

Multiple Choice

Arbitration is

A) required by the Federal Arbitration Act.
B) not allowed in interstate commerce contracts.
C) always preferable at litigation.
D) a private contractual process.

Correct Answer: