Ruag Ammotec Gmbh v. Archon Firearms

Summary

The Nevada Supreme Court held that a nonsignatory to an arbitration agreement may compel another nonsignatory to arbitrate if it establishes both a right to enforce the agreement and a contractual or equitable basis for compelling arbitration. The court further held that contract formation questions involving nonsignatories must be decided by the court, while scope questions are delegated to the arbitrator when a binding agreement unquestionably exists and the delegation is clear. It reversed both orders denying arbitration and remanded for further proceedings applying these principles.