This decision meant that general employment contracts, like the one Adams sued under, would have to be arbitrated in accordance with the federal statute.

In 1995, Saint Clair Adams, who was hired as a sales counselor, signed an employment application with Circuit City.

[2] Section 1 of the FAA excludes "contracts of employment of seamen, railroad employees, or any other class of workers engaged in foreign or interstate commerce" from the Act's coverage.

Justice Anthony Kennedy wrote the majority opinion, reversing the Ninth Circuit and holding that the exception did not apply to this case.

Justice David Souter joined all sections of Stevens' dissent besides a critique of previous decision of the Supreme Court in arbitration case law.

That precluded arbitration proceedings and allowed Adams to pursue a regular lawsuit in California courts.