International Yogurt Co. (IYC) developed a unique mix for making frozen yogurt and related products. Morris and

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International Yogurt Co. (IYC) developed a unique mix for making frozen yogurt and related products. Morris and his wife purchased a franchise from the company but were not told that a franchise was not a requirement for obtaining the mix—that the company would sell its yogurt mix to anyone. The Morrises’ franchise business was a failure, and they sold it at a loss after three years. They then sued the company for fraud and for violation of the state Franchise Investment Protection Act and the state Consumer Protection Act for failing to inform them that the mix could be obtained without a franchise. IYC claimed that no liability could be imposed for failing to make the disclosure. Was it correct? [Morris v International Yogurt Co., 729 P2d 33 (Wash)]

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Andersons Business Law and the Legal Environment

ISBN: 978-0324786668

21st Edition

Authors: David p. twomey, Marianne moody Jennings

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