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?

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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

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Published In: Civil Procedure Updates, MLM / Direct Sales Updates, MLM Consulting / Network Marketing Updates

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.

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