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ARBITRATION has been used in commercial disputes since at least the 13th century. (1) George Washington included an arbitration provision in his will, (2) and arbitration remains the preferred choice for parties engaging in international transactions (3)--especially those involving foreign direct investment in another country. (4) Litigation in the home courts of the government who owes you money for a dam or power plant is an unattractive option. At home, some states have been hostile to arbitration while others have not. Congress reconciled those differences by adopting the New York approach in the Federal Arbitration Act ("FAA") of 1925. (5) The Supreme Court has interpreted the FAA broadly--Congress invoked the full preemptive power of the Commerce Clause, (6) stated...
