1.Highlight the pertinent facts;

2.Identify the issue of law posed by the case problem. This will be in

the form of a question based on a legal concept from the chapter

3.What should be the decision in the case? (i.e. the answer to the issue).

4.The reasoning for such decision.

On February 2, Phillips induced Mallor to purchase form her fifty

shares of stock in the XYZ Corporation for $10,000, representing that

the actual book value of each share was $200. A certificate for fifty

shares was delivered to Mallor. On February 16, Mallor discovered

that the February 2 book value was only $50.00 per share. Thereafter,

Mallor sues Phillips