Gruma Corporation v. Norman Kenneth Morrison

Summary

The court held that the Federal Arbitration Act governs the parties' interstate-commerce distribution agreement and that its broad arbitration clause covers Morrison's statutory, contractual, and tort claims. The court further held that arbitration does not waive Morrison's substantive rights under the Arkansas Franchise Practices Act; questions concerning available remedies and the Act's applicability must initially be resolved in arbitration. The court therefore reversed the denial of Gruma's motion to dismiss and remanded for proceedings consistent with the opinion.