The District Court held that the wording of the arbitration clause applied only to current Amway distributors and did not apply to post-termination disputes between the company and distributors. Amway's arbitration agreement specified that disputes that may arise while operating an Amway distributorship between the company and distributors would be settled though arbitration and not through litigation. The Court held that because the clause used the words "while operating" it did not apply to disputes post-termination. The distributors were allowed to proceed with their claim against the company through litigation.

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