Arbitration in the United States, in some shape or form, has been around since the early 20th century.[1]Incorporating both statutory law and common law, arbitration in the early 1900s was described by one individual as “robust and active,” with most states having adopted arbitration statutes by this period.[2]

Before 1914, arbitration laws varied dramatically from state to state.[3]  During this period, the federal courts generally applied federal arbitration law, rather than state arbitration law, even though “no distinctive body of federal arbitration law existed [during this period].”[4]  Moreover, at this time, courts generally expressed hostility toward arbitration agreements and refused to enforce them for a variety of reasons.[5]

By the 1920s, advocates for expanding and strengthening arbitration laws had made significant strides in compelling the acceptance of state and federal arbitration statutes.[6]  As a result of these advocates’ efforts, the United States Arbitration Act (“USAA”) was passed in 1925 to place arbitration agreements upon the same footing as other contractual agreements, thereby ensuring the enforcement of agreements to arbitrate.[7]

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