is found in the Federal Arbitration Act, (FAA) which permits compulsory and binding arbitration, under which parties give up the right to appeal an arbitrator's decision to a court. In Prima Paint Corp. v. Flood & Conklin Mfg. Co., the U.S. Supreme Court established the "separability principle", under which enforceability of a contract must be challenged in arbitration before any court action, unless the arbitration clause itself has been challenged. Today, mandatory arbitration clauses are widespread in the United States, including by 15 of the largest 20 U.S. credit card issuers, 7 of the 8 largest cell phone companies, and 2 out of 3 major bike sharing companies in Seattle. The FAA has also been interpreted to preempt and invalidate state laws which prevent or discriminate against the enforcement of arbitration agreements. In one such case in 2023, which overruled California Assembly Bill 51, the Ninth Circuit Court of Appeals found that California's bill placed restrictions on the "broad national policy" favoring arbitration agreements. Similar fates have been bestowed upon legislation in New Jersey, New York, and Washington state which attempted to reduce the scope of arbitration clauses. In insurance law, arbitration is complicated by the fact that insurance is regulated at the state level under the McCarran–Ferguson Act. From a federal perspective, however, a circuit court ruling has determined that McCarran-Ferguson requires a state statute rather than administrative interpretations. The Missouri Department of Insurance attempted to block a binding arbitration agreement under its state authority, but since this action was based only on a policy of the department and not on a state statute, the United States district court found that the Department of Insurance did not have the authority to invalidate the arbitration agreement. In AT&T Mobility v. Concepcion (2011), the Supreme Court of the United States upheld an arbitration clause in a consumer standard form contract which waived the right to a lawsuit and class action. However, this clause was relatively generous in that the business paid all fees unless the action was determined to be frivolous and a small-claims court action remained available; these types of protections are recommended for the contract to remain enforceable and not unconscionable. Challenges to enforcement Determination of validity Although properly drafted arbitration clauses are generally valid, they are subject to challenge in court for compliance with laws and public policy. Arbitration clauses may potentially be challenged as unconscionable and, therefore,