Final answer:
The Federal Arbitration Act promotes the arbitration of contract disputes whether the dispute involves federal or state law. Therefore, the given statement is true.
Step-by-step explanation:
The statement that the Federal Arbitration Act promotes the arbitration of contract disputes whether the dispute involves federal or state law is true.
The Federal Arbitration Act (FAA) was enacted in 1925 and it provides for the enforcement of arbitration agreements in contracts. The purpose of the FAA is to promote and facilitate the use of arbitration as an alternative method for resolving disputes.
Arbitration is a form of alternative dispute resolution, where parties agree to submit their dispute to a neutral third party (an arbitrator) who will make a decision. The FAA applies to both domestic and international arbitration, and it covers disputes involving contracts in various fields, including both federal and state law.