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The Federal Arbitration Act (FAA) requires enforcement of a written provision in . . . a contract evidencing a transaction involving commerce to settle by
The Federal Arbitration Act ("FAA") requires enforcement of a "written provision in . . . a contract evidencing a transaction involving commerce to settle by arbitration a controversy thereafter arising out of such contract . . . shall be valid, irrevocable, and enforceable." 9 U.S.C. 2. Prior case law has interpreted "involving commerce" to mean "affecting commerce." Jerry lives in a state with laws that disfavor arbitration clauses, and defaults on a loan to a state bank whose loan officer Jerry claims defrauded him. When the bank secures an order requiring arbitration, Jerry cries foul. Congress, he argues, has exceeded its commerce power in ordering intrastate disputes arbitrated, contrary to the declared public policy of the state. Which of the following argument(s) is/are helpful to the bank seeking enforcement? Group of answer choices The FAA has a jurisdictional nexus. The FAA regulates economic activity. In the aggregate, all contracts containing arbitration clauses substantially affect interstate commerce. All answers are correct
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