SHEPARD v. EDWARD MACKAY ENTERPRISES, INC.,
Federal Arbitration Act, which makes valid and enforceable any arbitration provision in a contract "evidencing a transaction involving commerce," preempts California law allowing a purchaser of real property to bring an action in court for construction and design defects, notwithstanding an agreement to arbitrate. Application of FAA to construction defects case was consistent with Commerce Clause where products used in construction were manufactured outside California, even if those products were not the source of the alleged defects.
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