Any arbitration that takes place in California must comply with the California Arbitration Act.The California Arbitration Act is a piece of legislation that regulates private arbitration in the state of California. This law is intended to create and streamline the process of arbitration in the state. Certain provisions of the law have caused controversy, and there is currently a lawsuit pending to determine whether provisions involving mandatory arbitration agreements should be honored, but the Act as a whole has been instrumental in establishing the importance of arbitration in California and has made the state a safe haven for those hoping to use arbitration to resolve disputes.