Business law

Will Greene, an experienced promoter and producer of musical concerts, entered into a contract with Len Rencel, a rock singer, whereby Greene would promote several concerts for Rencel. Rencel belonged to the American Federation of Musicians (AFM), a union that represents most big-name musicians. The contract between Greene and Rencel was on a standard, preprinted form required to be used by all AFM members. The contract contained an arbitration clause that required any disputes regarding the contract to be heard and decided by the executive board of the AFM. When a monetary dispute arose between Greene and Rencel regarding the division of proceeds from the concerts, Greene sued Rencel in court. Rencel filed a motion to compel arbitration. Greene argued that the arbitration clause was unenforceable. Is Greene correct? Why or why not? What legal theory will Greene argue?

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In November 1959, Raymond Poole, a 33-year-old college graduate, went to the Ballroom Dance Studio to redeem a certificate entitling him to three free dance lessons. At that time, he lived alone in a one-room attic apartment. During the free lessons, the instructor told Poole that he had “the potential to be a fine, accomplished dancer.” Poole then signed up for more lessons. He attended lessons regularly and was praised and encouraged by the instructors despite his lack of progress. Contract extensions and new contracts for additional instructional hours were executed, which Poole prepaid. Each written contract contained the bold-type words, “Noncancellable contract.”

On September 24, 1961, Poole was severely injured in an automobile accident. At that time he had contracted for a total of 2,734 hours of dance lessons, for which he had prepaid $24,812. When the Ballroom Dance Studio refused to refund any of his money, Poole sued to end the outstanding contracts and recover the money for his prepaid lessons. What argument(s) can Poole use to end the contracts? What argument(s) will the Ballroom Dance Studio make? Decide who will succeed.

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