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The Federal Arbitration Act of 1 9 2 5 requires that all contracts for arbitration be treated as any other contract at common law. The
The Federal Arbitration Act of requires that all contracts for arbitration be treated as any other contract at common law. The state of Alabama wishes to protect its citizens from a variety of arbitration provisions that they might enter into unknowingly. Thus the legislation provides that all predispute arbitration clauses be in bold print, that they be of twelvepoint font or larger, that they be clearly placed within the first two pages of any contract, and that they have a separate signature line where the customer, client, or patient acknowledges having read, understood, and signed the arbitration clause in addition to any other signatures required on the contract. The legislation does preserve the right of consumers to litigate in the event of a dispute arising with the product or service provider; that is with this legislation, consumers will not unknowingly waive their right to a trial at common law.
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Is the Alabama law preempted by the Federal Arbitration Act?
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