Phoenix Motor Co. sold cars to Desert Diamond Player’s Club Inc. When the seller sold the cars, the purchaser executed seriatim purchase agreements with the seller. All the purchase agreements contained an interesting arbitration clause.
The clause, though not germane to the ultimate issue in Phoenix Motor v. Desert Diamond Player’s Club, had gradual contractual alternative dispute resolution steps that led up to arbitration. The kicker in the case decided Aug. 20 by the Fourth District Court of Appeal is that the purchaser signed only one agreement to arbitrate but found itself bound to arbitration because it signed a separate agreement that did not have an arbitration clause.
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