Arnold Schwarzenegger found fame in The Terminator 20 years ago

Fred Martin Motor Company agreed to pay a "substantial" sum to Schwarzenegger's Arnold's All-Stars, an after-school programme founded by the former actor.

The dealership also issued a written apology to Schwarzenegger, who is now the governor of California.

The adverts, placed in an Ohio journal, were from 1984 film The Terminator.

A quotation next to the photo suggested potential customers could "terminate early" on their existing car leases and buy or hire from Fred Martin instead.

Second success

Schwarzenegger sued the car company in 2002 for allegedly violating his right of publicity prior to the Californian governor elections.

The case was dismissed in June by a federal appeals court, which stated that California courts had no jurisdiction to hear it because the adverts were not shown in that state.

Schwarzenegger recently settled another action against a company which produced a "bobblehead" doll of him in a suit toting a gun.

He had objected to his image being used for the bobbing-head toy.

The settlement allowed Ohio Discount Merchandise to produce a figure of Schwarzenegger but without a gun.

Part of the profits also went towards Arnold All-Stars.