The hearing panel agreed, but said the Federal Arbitration Act prevented FINRA from enforcing those rules.
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Trial lawyers desperately want to neuter the Federal Arbitration Act, which sweeps all manner of litigation into its maw.
Congress passed the Federal Arbitration Act in 1925 to encourage litigants to settle their disputes without resorting to full-blown litigation.
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This is yet another challenge to the Federal Arbitration Act, a law Congress intended to encourage arbitration instead of expensive court battles.
That case tests whether businesses can short-circuit a consumer class action by invoking the federal Arbitration Act, which encourages arbitration instead of litigation.
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Regardless, he said, there will probably be five votes to make it clear there is no carve-out in the Federal Arbitration Act for class actions.
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The Federal Arbitration Act has roots in the historic hostility of state judges to any sort of private contract that diminished their ability to question its terms.
In fact, if this matter is deemed to be subject to the Federal Arbitration Act, the court will stay the litigation involving the other parties until the arbitration between Mr. Sheen and Warner Bros. is completed.
The conservative majority on the court, led by Chief Justice John Roberts has shown a strong preference for upholding the Federal Arbitration Act, which encourages businesses to use arbitration instead of courtroom litigation to settle their differences.
In the United States both secular and religious arbitration are firmly established, operating under a Federal Arbitration Act that gives robust standing to the procedure but also allows the parties to counter-appeal to ordinary courts on certain grounds (though America's church-state separation stops courts hearing arguments about doctrine).
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