Fraudulent misrepresentation is a business tort review this hypothetical to determine whether there was a fraudulent misrepresentation:

You own the e-business "Best Products Ever;" you go around the world testing new products that you might want to sell. When you find a product that you like, you work with the owner to negotiate terms that will allow you to sell the product from "Best Products Ever."

Best Products Ever has a reputation for finding and selling only the best products from all over the world. You have a page on "ConnectingU," a free social media platform, where people from all over the world suggest products that you should try out, that asks for referrals to products. About seventy percent (70%) of products come from suggestions on ConnectingU.

One day you see that there is a suggestion from Donnie Darko. You currently sell a number of very popular products suggested by Donnie. Donnie suggests that you try a product called "ShampooNever." Donnie explains that it is a dry shampoo that will keep your hair fresh for at least a week.

Donnie tells you that his friend Heidi makes the product and that she has been approached by many different businesses offering to market and sell her product. Heidi has also told Donnie that, based upon an unblemished reputation for only selling only the best, she would like Best Products Ever to be the first to introduce and market ShampooNever. Heidi is a hairstylist in Australia.

In the past, you have always gone to visit the product maker so that they can show you the results and benefits of the product. Your daughter is getting married in two (2) months so you don't currently have the time or capital to go to Australia. Donnie tells you that his wife and daughter have used SampooNever and that they love it.

So far, you have sold every product that Donnie has suggested, and they are consistently among the most popular. Based upon Donnie's representations, and for the first-ever, you decide to purchase and market ShampooNever without testing it. You send Heidi an order for 200 bottles of ShampooNever.

A couple of weeks later, Heidi contacts Donnie and tells him that she, for the first time, used ShampooNever on a customer with blond hair, and it turned bright blue. She also tells Donnie that some of her customers have complained about having hair loss as soon as the next day. Donnie does not share this information with you.

In the meantime, you start marketing and selling ShampooNever. One day, you find a comment on ConnectingU from Shari with a picture of her blue hair, claiming that you are a fraud. Her post goes viral and now there are posts all over ConnectingU claiming that you are a fraud and telling everyone not to buy your products. In the last month, your sales decreased by sixty percent (60%).

Please research the business tort's fraudulent and negligent misrepresentation.

1. Determine what evidence is needed to prove fraudulent and negligent misrepresentation.
2. Using the facts from this case, determine if you have a claim of fraudulent and/or negligent misrepresentation.
3. Can you sue Donnie for misrepresentation? Use your analysis to explain why or why not.
4. Can you sue Heidi for misrepresentation? Use your analysis to explain why or why not.
5. What are your injuries?
6. What type(s) of remedy is/are available to you?
7. Include a minimum of 3 resources

Answer rating: 100% (QA)

Fraudulent and negligent misrepresentation are both torts that involve making false statements that induce another party to enter into a contract or take some action resulting in harm Lets break down ... View the full answer