United States / 17 July 1978 / U.S. Court of Appeals, Third Circuit / Becker Autoradio U.S.A., Inc. (US) v. Becker Autoradiowerk GmbH (West Germany) / 77-2566, 77-2567
| Country | United States |
| Court | United States, U.S. Court of Appeals, Third Circuit |
| Date | 17 July 1978 |
| Parties | Becker Autoradio U.S.A., Inc. (US) v. Becker Autoradiowerk GmbH (West Germany) |
| Case number | 77-2566, 77-2567 |
| Applicable NYC Provisions | II | II(3) |
| Source | 585 F.2d 39 |
| Languages | English |
| Summary | A dispute arose between the Defendant, Becker Autoradiowerk GmbH (“BAW”), a West German manufacturer of automobile radios and accessories, and the Plaintiff, Becker Autoradio U.S.A., Inc. (“Becker U.S.A.”), a Pennsylvania corporation and BAW's exclusive American distributor. The parties concluded both an oral agreement and a written distribution agreement, which contained an arbitration clause providing for arbitration in Germany in accordance with the Rules of Arbitration of the International Chamber of Commerce (“ICC”). The Plaintiff brought an action in United States federal district court and sued the Defendant for a breach of the oral agreement, arguing that it was a separate issue from the terms of the written contract and therefore not covered by the arbitration clause. The Defendant moved to stay the judicial proceedings in the District Court and to compel arbitration. The District Court denied the Defendant’s motion and the Defendant appealed. The Court of Appeals for the Third Circuit reversed the district court’s decision and ordered that the dispute be submitted to arbitration in accordance with the parties’ agreement. In so holding, the Court held that according to Article II(3) NYC or Section 3 of the Federal Arbitration Act the question of whether, in contracts involving commerce, there is an agreement to arbitrate an issue or dispute upon which suit has been brought is governed by federal law. The Court concluded that the dispute was arbitrable under the terms of the written agreement and referred the parties to arbitration in accordance with their agreement. |
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Attachment (1)
 Original Pending Adobe Acrobat PDF |
