Originally from Dispute Resolution Journal

The textile and apparel industry is the largest employer (after food) in the United States. Its most important marketing center is in New York City. In 1978, the New York State Court of Appeals, in the landmark case of Marlene Industries Corp. v. Carnac Fabrics, Inc. ruled illegal the enforcement of written agreements containing an arbitration clause unsigned by the parties. This ruling, the author claims, is contrary to the Uniform Commercial Code, the New York State arbitration statute, and the United States Arbitration Act. He provides a comprehensive review of textile practice and an analysis of decisions used as precedent in Marlene. He suggests several courses of action, among them legislation to support the position that a provision for arbitration does not materially alter an offer or sales agreement in an industry where arbitration is well accepted or, alternatively, the courts' reversal of its policy in subsequent cases.