Beth enters into a contract for the services of Cable Connection Inc. The corporation provides the contract, which contains an arbitration clause. This clause requires that any dispute must be submitted to arbitration rather than being pursued through litigation. With respect to contracts with such clauses, federal courts have ruled all of the following except
A) arbitration is encouraged under the Federal Arbitration Act.
B) arbitration can provide a meaningful way to seek redress for harm.
C) state law preempts federal law with respect to arbitration clauses.
D) federal law preempts state courts' interpretations of arbitration clauses.

Question

Beth enters into a contract for the services of Cable Connection Inc. The corporation provides the contract, which contains an arbitration clause. This clause requires that any dispute must be submitted to arbitration rather than being pursued through litigation. With respect to contracts with such clauses, federal courts have ruled all of the following except​
A) ​arbitration is encouraged under the Federal Arbitration Act.
B) ​arbitration can provide a meaningful way to seek redress for harm.
C) ​state law preempts federal law with respect to arbitration clauses.
D) ​federal law preempts state courts' interpretations of arbitration clauses.

Quizplus · Accepted Answer

Federal law, specifically the Federal Arbitration Act, generally trumps state law regarding arbitration clauses. Therefore, state law does not preempt federal law with respect to arbitration clauses.

Beth Enters into a Contract for the Services of Cable