Trump's attorney, Alan Garten, accused NBC of violating the terms of a contract with the Miss Universe Organization, which Trump and NBCUniversal jointly own.
NBC announced on June 29 that it would be ending its business relationships with Trump -- which meant canceling the upcoming telecast of the Miss USA pageant and next year's telecast of Miss Universe. The cancellation came following Trump statements calling illegal immigrants in the US from Mexico, rapists and murderers.
Noteworthy, the dispute is going to be settled in something of a libertarian court,
Garten said in an interview on CNN's "Reliable Sources" that he believed NBC's backing away from the pageants is "a clear breach of the provisions of the agreement." But he also said the agreement to televise the pageants has "an arbitration clause."
These kinds of clauses, notes CNN, are increasingly common in business contracts. The clauses call for disputes between two sides to be settled privately by an arbitrator, rather than in a public hearing.
"We will obviously be following the contract" by seeking arbitration, Garten said. "I think that sort of represents the difference between how we, as an organization, act and how NBC has acted. We follow the contract; they have not."
Garten also said, contrary to some speculation, "there is no morals clause" in the contract with either network. Such a clause can let a company get out of a contractual obligation if an individual brings embarrassment upon the company
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Garten asserted that companies get into business with Trump knowing that he "draws a lot of media attention and talks straight."
As for another company that dropped its ties with Trump recently, Macy's (M), Garten said "we're looking at all possible avenues," including a lawsuit, but declined to comment further.
-RW
(ht Jay Stephenson)
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