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ADR News
Supreme Court Agrees to Review FAA Preemption of State Arbitration Laws
Under the law of some states, including California, arbitration agreements that require arbitration on an individual basis (and bar class actions) are unenforceable in consumer contracts. In those states, the arbitration agreement cannot be enforced even when an individual claimant brings the arbitration and may vindicate rights on an individual basis. The U.S. Supreme Court has agreed to decide whether the Federal Arbitration Act preempts state laws that condition enforcement of arbitration agreements on the availability of procedures when the procedure is not necessary for the parties to pursue their claims.
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