Rhodes v. Consumers' Byline, Inc., 868 F.Supp. 368 (1993)

Does an arbitration clause in a contract require the stay or dismissal of the suit in which a party contends that the contract is unenforceable?


Consumers' Byline was a multilevel marketing and sales company. Rhodes was a participant who allegedly lost $500 through participation in Consumers' Byline. Rhodes sued, alleging various violations of New York state law, securities laws and RICO. The agreement contained a both a mandatory arbitration clause and choice of law provision designating New York law as the choice of governing law. Consumers' Byline moved to stay or dismiss, citing the arbitration clause and federal arbitration law, which requires a stay of the action until arbitration may be had.

Full case and case summary also available online at: http://www.mlmlegal.com/legal-cases/Rhodes_v_ConsumersBylineInc.php

LOADING PDF: If there are any problems, click here to download the file.

Written by:

Published In:

Reference Info:Federal, 1st Circuit, Massachusetts | United States

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Babener & Associates | Attorney Advertising

Don't miss a thing! Build a custom news brief:

Read fresh new writing on compliance, cybersecurity, Dodd-Frank, whistleblowers, social media, hiring & firing, patent reform, the NLRB, Obamacare, the SEC…

…or whatever matters the most to you. Follow authors, firms, and topics on JD Supra.

Create your news brief now - it's free and easy »


Welcome to MLM Legal - a valuable resource to the Multi-Level Marketing and Direct Sales Industry. ... View Profile »

Follow Babener & Associates:

Reporters on Deadline

All the intelligence you need, in one easy email:

Great! Your first step to building an email digest of JD Supra authors and topics. Log in with LinkedIn so we can start sending your digest...

Sign up for your custom alerts now, using LinkedIn ›

* With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name.