16.7 Third Party Beneficiary. National Association for Stock Car Auto Racing, Inc. (NASCAR), sanctions stock car races.
Question:
16.7 Third Party Beneficiary. National Association for Stock Car Auto Racing, Inc. (NASCAR), sanctions stock car races. NASCAR and Sprint Nextel Corp. agreed that Sprint would become the Official Series Sponsor of the NASCAR NEXTEL Cup Series. The agreement granted sponsorship exclusivity to Sprint and contained a list of “Competitors” that were barred from sponsoring Series events. Excepted were existing sponsorships: in “Driver and Car Owner Agreements” between NASCAR and the cars’ owners, NASCAR promised to “preserve” those sponsorships, which could continue and be renewed despite Sprint’s exclusivity. RCR Team #31 owns the #31 Car. Cingular Wireless, LLC (a Sprint competitor) had been #31 Car’s primary sponsor since 2001. In 2007, Cingular changed its name to AT&T Mobility and proposed a new paint scheme for the #31 Car that called for the Cingular logo to remain on the hood while the AT&T logo would be added. NASCAR rejected the proposal. AT&T filed a suit against NASCAR, claiming that NASCAR was in breach of its “Driver and Car Owner Agreement”. Can AT&T maintain an action against NASCAR based on this agreement? Explain. [AT&T Mobility, LLC v. National Association for Stock Car Auto Racing, Inc., 494 F.3d 1356 (11th Cir. 2007)]
Step by Step Answer:
Business Law Today Comprehensive
ISBN: 9780324595741
8th Edition
Authors: Roger LeRoy Miller, Gaylord A Jentz