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Arbitration: A Balancing Act
California Labor & Employment Law Review - Volume 38, Issue 2
From its origins, the foundational concept of arbitration as an alternative to the traditional court system was rooted in the recognition that court proceedings tended to be lengthy, costly—and unnecessarily bogged down in formal rules and procedures. The original Federal Arbitration Act (FAA),1 enacted in 1925, required courts to endorse consenting parties’ binding contracts with provisions requiring that any future disputes between them would be resolved through this alternative venue. The FAA, as well as the California Arbitration Act (CAA), provide a basic framework in which parties can enter into enforceable contacts requiring an alternative dispute resolution forum in which traditional processes are streamlined, reduced, or eliminated—and the finality of outcomes is assured.
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