In enacting the Federal Arbitration Act, Congress intended to create a federal policy in favor of arbitration. The FAA mandates arbitration of arbitral agreements "evidencing a transaction involving commerce." (See 9 U.S.C. § 2). Commerce is defined in the FAA as “commerce among the several States or with foreign nations." (See 9 U.S.C. § 1).
The federal policy in favor of arbitration is reflected in United States Supreme Court cases holding that the FAA preempts state law and is broad in reach. As a result, even if a contact is executed in Georgia, if it involves interstate commerce the FAA will preempt the GAC. Thus, Georgia practioners must have a firm grasp on preemption, the FAA, and the Georgia Arbitration Code (GAC).