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AMF Inc. v. Brunswick Corp.

United States District Court for the Eastern District of New York

621 F. Supp. 456 (1985)

Facts

AMF Inc. (plaintiff) and Brunswick Corporation (defendant) manufactured machinery used for bowling alleys. AMF and Brunswick previously filed claims against each other for false advertising. The parties ended litigation with a settlement agreement providing that any future advertising dispute would be submitted to the National Advertising Division (NAD) of the Council of Better Business Bureaus to determine whether the questionable advertisement was backed by evidence. Brunswick began advertising a new product, Armor Plate 3000, an alternative material for bowling lanes that Brunswick claimed was more durable than wooden lanes. AMF disputed the advertisement and invoked the settlement agreement. AMF informed Brunswick that Brunswick needed to send data supporting its advertisement to the NAD for review. Brunswick refused, and AMF filed suit in federal district court under the Federal Arbitration Act (FAA) to compel Brunswick to submit its data to the NAD for nonbinding arbitration.

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Holding and Reasoning (Weinstein, C.J.)

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