Contemporary Business and Online Commerce Law 7th Edition by Henry R Cheeseman

Exercise 7

Arbitration AMF Incorporated and Brunswick Corporation both manufacture electric and automatic bowling center equipment. The two companies became involved in a dispute over whether Brunswick had advertised certain automatic scoring devices in a false and deceptive manner. The two parties settled the dispute by signing an agreement that any future problems between them involving advertising claims would be submitted to the National Advertising Council for arbitration. Brunswick advertised a new product, Armor Plate 3000, a synthetic laminated material used to make bowling lanes. Armor Plate 3000 competed with bowling lanes produced by AMF. Brunswick’s advertisements claimed that bowling centers could save up to $500 per lane per year in maintenance and repair costs if they switched to Armor Plate 3000 from AMF bowling lanes. AMF disputed this claim and requested arbitration. Is the arbitration agreement enforceable? AMF Incorporated v. Brunswick Corp., 621 F.Supp. 456, Web 1985 U.S. Dist. Lexis 14205 (United States District Court for the Eastern District of New York)