In 1995, Golf U.S.A. entered into a franchise agreement granting Express Golf the right to operate a

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In 1995, Golf U.S.A. entered into a franchise agreement granting Express Golf the right to operate a retail store using Golf U.S.A.’s methods, name, designs, systems, and service marks. The franchise agreement also stated that “[a]ny and all disputes, claims and controversies arising out of or relating to this Agreement . shall be resolved by arbitration conducted in Oklahoma County, State of Oklahoma.” Golf U.S.A. is an Oklahoma corporation. The golf retail store failed within nine months, and Charles Barker, the sole shareholder of Express Golf, brought this action against Golf U.S.A. for fraudulent misrepresentation. He alleged that Golf U.S.A. misrepresented the success of its retail operations, thereby leading him to sign the franchise agreement. Golf U.S.A. moved to dismiss the case, arguing that the dispute should be decided by arbitration and not by the judiciary. Barker claimed that the arbitration clause was unconscionable and therefore unenforceable. No statute prohibits the inclusion of arbitration clauses in franchise agreements. Should Barker be permitted to litigate in court or should the arbitration clause of the franchise agreement control?

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The law of marketing

ISBN: 978-1439079249

2nd Edition

Authors: Lynda J. Oswald

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