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Published online by Cambridge University Press: 16 November 2009
(Note: This proposed legislation consists of several recommended changes to federal arbitration legislation)
[Insert at start of §2]
Scope of Federal Legislation: This legislation applies to transactions or conduct that affects interstate commerce. [Alternative: strike word “involving” before word “commerce” in existing section two of the FAA and substitute word “affecting.”].
[insert as the new last sentence of §2]
State Law to Govern Savings Clause: The rule of decision to be applied when deciding the validity of an arbitration agreement should be state law.
[insert as new §10(a)(7)]
Party Authority to Enhance Review: The parties may contract for judicial review of the arbitration award for reasons beyond the grounds set forth in this act.
[insert as new §10(a)(8)]
Awards Contrary to Public Policy: Courts may vacate awards that are plainly inconsistent with public policies expressly set out in legislation or legal precedents.
[insert as new §18]
Preemption. No intent to preempt the field: States may regulate arbitration, provided that state law does not stand as an obstacle to enforcing consensual agreements to arbitrate.
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