The U.S. Chamber of Commerce and other business organizations have filed suit in federal court against the State of California to have AB 51 declared preempted by the Federal Arbitration Act (FAA). Chamber of Commerce of the United States v. Becerra, No. 2:19-cv-2456 KJM DB. Alternatively, the lawsuit seeks a declaration that AB 51βs express FAA carve out provision, which protects arbitration agreements otherwise enforceable under the FAA, applies to both enforcement and formation of arbitration agreements.
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