Question $31$

Raja executes a contract with Punati Enterprises for the sale of $1000$ rolls of sheet metal. The contract provides for arbitration

of all disputes. The arbitration agreement provides that Punati has the right to appoint the arbitrator. It also provide that any

questions of arbitrability are to be referred to the arbitrator. When a dispute arises, Punati appoints an arbitrator. Because he

objects to the arbitrator as biased, Raja files a suit in Oklahoma state court, asking the court to appoint a neutral arbitrator. Raja

will likely

lose, because the arbitration agreement provides that the arbitrator must decide if he can be fair

lose, because the lawsuit was supposed to be filed in federal court

win, because a state court is not bound by the Federal Arbitration Act

win, because public policy dictates that arbitration must be fair