Chapter 9 Homework - Homework 10 10-6 Case Problem In the...

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Unformatted text preview: Homework # 10 – 10-­‐6 Case Problem In the case of AT&T Mobility, LLC v. National Association from Stock Car Auto Racing, AT&T files suit against NASCAR for not allowing them to enforce their sponsorship privileges of placing their graphic on their sponsored car, car #31. Due to another contract between NASCAR and Sprint, another wireless phone service company, Sprint disallows NASCAR from being sponsored from other companies of the same type, making them the official sponsor of NASCAR. Still, in the Sprint contract, they have a clause which states that existing sponsorship relationships between NASCAR and other phone companies may continue to exist. In AT&T’s case, their contract with car #31 was formed while their name was still “Cingular”. Having changed their name, they wished to place their logo on another area of the car. NASCAR refused to allow this as it violated their contract with Sprint of not allowing sponsorship between them and other phone companies. Regardless, AT&T filed this suit based on their standing as a third party beneficiary in the clause in the Sprint NASCAR contract. The action likely won’t maintain as AT&T isn’t actually a third party beneficiary because they were not explicitly stated in the contract. Due to this, AT&T has no real standing to file suit. In the end, the court dismissed the case due to lack of standing finding that in order to be a third party beneficiary, AT&T’s name must be specifically stated in the contract which it was not. ...
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