Janet Van Tassel met Charles Carver, president of McDonald Corporation, a sub-franchisor of Baskin-Robbins Ice Cream Company.
Question:
Janet Van Tassel met Charles Carver, president of McDonald Corporation, a sub-franchisor of Baskin-Robbins Ice Cream Company. To induce her to become an ice cream store operator in a Michigan mall, Carver told Van Tassel the following: The proposed location was a gold mine. It would not be long before she would be driving a big car and living in a big house, and she would do all right if she stuck by him. He would not steer her wrong because he liked her. This was the right store for her, and all she would be doing is playing golf and making bank deposits. She was not going to lose money, and this would be the best thing that would happen to her. Van Tassel invested in the franchise, but it failed to meet Carver's predictions of success. Van Tassel filed suit, seeking to reclaim her investment. Did the representations constitute fraud? Why or why not?
Foundations Of Business
ISBN: 9780357717943
7th Edition
Authors: William M. Pride, Robert J. Hughes, Jack R. Kapoor