Background of The Case
In the early 20th century, businessmen in New York began promoting the idea of legally binding arbitration to resolve disputes as a less costly alternative to litigation. Courts were hostile to the idea, especially in interstate commerce, so in 1925 arbitration advocates persuaded Congress to pass the Federal Arbitration Act (FAA), providing rules and a legal framework for arbitration. Among its provisions was a requirement that parties who had agreed to arbitrate do so before going to court.
The FAA made no impact on the federal courts until the 1958 Second Circuit decision in Robert Lawrence Co. v. Devonshire Fabrics, Inc., which held that the requirement to arbitrate meant that any challenge to the contract itself had to go before an arbitrator, not just disputes over possible breaches of contract. Only the arbitration clause itself could be challenged in court first.
Read more about this topic: Prima Paint Corp. V. Flood & Conklin Mfg. Co.
Famous quotes containing the words the case, background of, background and/or case:
“Chile consents to do all we can reasonably demand. My regret is that our Government blustered and bullied. President [Benjamin] Harrison argued in his message like a prosecutor—made the most of the case against our weak sister. Forbearance, charity, friendship, arbitration should have been in our words and thoughts.”
—Rutherford Birchard Hayes (1822–1893)
“In the true sense one’s native land, with its background of tradition, early impressions, reminiscences and other things dear to one, is not enough to make sensitive human beings feel at home.”
—Emma Goldman (1869–1940)
“They were more than hostile. In the first place, I was a south Georgian and I was looked upon as a fiscal conservative, and the Atlanta newspapers quite erroneously, because they didn’t know anything about me or my background here in Plains, decided that I was also a racial conservative.”
—Jimmy Carter (James Earl Carter, Jr.)
“Reminiscences, even extensive ones, do not always amount to an autobiography.... For autobiography has to do with time, with sequence and what makes up the continuous flow of life. Here, I am talking of a space, of moments and discontinuities. For even if months and years appear here, it is in the form they have in the moment of recollection. This strange form—it may be called fleeting or eternal—is in neither case the stuff that life is made of.”
—Walter Benjamin (1892–1940)