Johnson Controls Inc. manufactures building equipment and management systems and distributes its products worldwide through direct sales,
Question:
Johnson Controls Inc. manufactures building equipment and management systems and distributes its products worldwide through direct sales, contractors, and distributors. Edman Controls, Inc. is a distribution company. Johnson and Edman entered into an agreement that awarded Edman the exclusive rights to distribute Johnson products in Panama, and any dispute arising would be resolved through arbitration using Wisconsin law. Johnson breached contract when it sold its products directly to Panamanian developers instead of selling it to Edman first. Edman initiated Arbitration proceedings against Johnson for breach of contract. Arbitrator awarded Edman $733,341 in lost of profits. Johnson did not accept the arbitrators decision and filed a motion in an US district court. The court refused to hear Johnson’s case.
a. What is an arbitrator’s award?
b. Should the US district court have refused to hear Johnson’s case?
Business Law Legal Environment Online Commerce Business Ethics and International Issues
ISBN: 978-0134004006
9th edition
Authors: Henry R. Cheeseman