Opinion ID: 1702725
Heading Depth: 1
Heading Rank: 11

Heading: Effect of Subject Transaction on Interstate Commerce

Text: Having concluded that the dispute in this case has a sufficient nexus to the credit agreement and the loan transaction it evidences to be fairly said to arise out of, or in connection with, that transaction, or to relate to it, we now turn to an analysis of whether that agreement and/or transaction had a substantial effect on interstate commerce. In Sisters of the Visitation v. Cochran Plastering Co., 775 So.2d 759 (Ala. 2000), this Court listed factors to be considered in determining whether a transaction has had a substantial effect on interstate commerce. Those factors are: (1) the citizenship of the parties and any affiliation the parties have with out-of-state entities; (2) tools and equipment used in performance of the contract; (3) allocation of the contract price to cost of services and materials involved in performance of the contract; (4) subsequent movement of the object of the contract across state lines; and (5) the degree to which the contract at issue was separable from other contracts that are subject to the FAA. Id. at 765-66. In determining whether a transaction affects interstate commerce, the United States Supreme Court directs that we consider[] the aggregate effects the transaction has on interstate commerce. Tefco Fin. Co. v. Green, 793 So.2d 755, 759 (Ala. 2001).