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Arbitration ^><^^^^>^><^><^<^> 295
vides for an Optional Standard License Agreement 39 to be used by the respective distributors as an alternative to the distributors' own form, the exhibitor having the free option of choosing which form of contract he desires to accept.
Incorporated in this contract is a provision for the arbitration of disputes. The provisions controlling arbitration are to be found in the twentieth clause of this agreement, being preceded by an introductory paragraph which states that the clause "is optional with the parties thereto". Briefly, this section of the contract provides for the settlement of disputes by an Arbitration Board consisting of four members "each of whom shall be engaged in the motion picture business, and two of whom to be appointed by the Exhibitor, and the remaining two appointed by the Distributor". Either party may resort to arbitration upon making written request nominating two arbitrators and designating the time of the hearing, which date shall not be "earlier than seven (7) days from the date of the sending of such notice" under ordinary circumstances. Within five days after the mailing of such request, the second party must name two arbitrators. "If the arbitrators, or a majority of them, are unable to reach a decision, then they, or a majority of them, shall immediately select an umpire who shall not be engaged in the motion picture business." The clause further provides: "The Board of Arbitration shall have the power only to give force and effect to the provisions of this license agreement and the rights or obligations of the parties thereunder; provided that if after a full hearing of any controversy . . . the arbitrators . . . are of the opinion that because of unusual circumstances ... a strict enforcement of the provisions . . . would impose undue hardship upon one of
39 The full text of the Optional Standard License Agreement, 1933, appeared in the Motion Picture Herald, November 19, 1932, pp. 23-26. In the January 21, 1933, issue of the same journal (p. 14) appeared the "Final Text of the Kent Plan for Appeals Board and Contract". The optional feature regarding the use of this contract was undoubtedly provided by the distributors in hopes of forestalling possible governmental action under the antitrust laws.