AOL, Cendant Settle Racial Slur Suit

America Online Inc. and one of its business partners, Cendant Corp. have reached an out of court settlement with a Muslim, who lodged a complaint about a racial slur hand lettered on the address label of a gift she had purchased from Cendant through AOL.

The terms of the settlement with Fatimah Abu Bakr, Chicago, were not disclosed. A spokesperson for Cendant said his company accepted the responsibility for the problem, adding that AOL was only hosting the site.