Both federal and state courts must defer to arbitration if the contract in dispute contains a binding arbitration clause.

Name: Both federal and state courts must defer to arbitration if the contract in dispute contains a binding arbitration clause.
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This is known as the federal policy favoring arbitration and is supported by the Federal Arbitration Act. State courts also generally defer to binding arbitration clauses in contracts under the principle of state contract law.

Both Federal and State Courts Must Defer to Arbitration If