Bess v. C & B Chrysler-Jeep
A corporation agrees to sell its automobile dealership. The purchase agreement with the new buyer contains an arbitration provision. The president of the selling corporation agrees to enter personally into a separate noncompetition agreement with the new purchaser of the dealership. The separate agreement contains no arbitration provision. Does the arbitration provision included in the purchase agreement bind the president personally.
Court find that the arbitration agreement between the corporation and the new purchasers of the business does not bind the president of the selling corporation individually and his agreement to execute a noncompetition agreement as an individual does not obligate him personally to comply with the arbitration provision in the purchase agreement.
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