Morrison v. Amway Corp.

2d 529 was a lawsuit concerning the enforcement of a contractual arbitration provision between the defendant Amway Corp. and the plaintiff their distributors.

To become a distributor of Amway products, one must pay a fee and sign a standard distributorship agreement that is renewed annually.

Business Support Materials (BSM) provide media and functions designed to motivate Amway distributors.

On January 27, 2005, the distributors moved in the district court to vacate the award alleging Gifford's partiality and “corruption” as well as the unenforceability of the arbitration agreement.

The appeals court ruled in favor of the plaintiff and held that the arbitration agreement was illusory, lacking in consideration, and unenforceable.