Facts
N&D (P) agreed to purchase 75,000 yards of fabric from DHJ (D). P orally told D of its requirements that the fabric be colorfast and noncolorfast dye would be unacceptable. P used the fabric delivered only to find out later that it was not colorfast. P sued for fraud and misrepresentation. The order form contained an arbitration clause, and D moved to stay proceedings pending arbitration. The District Court found that there was no agreement to arbitrate. D appealed.
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