C & J Publishing Company (C & J) decided to buy an integrated business system consisting of new printers for its primary business together with other peripheral equipment.

Hal Upman, Chief of C & J's Purchasing Department, told his subordinate, Bob Buyer, to make the purchase from Auto Systems (Auto), a manufacturer and supplier of business equipment. When Buyer told Upman that Auto Systems had a reputation for shoddy equipment, Upman said: "Don't worry - even though Auto Systems has that reputation, their price is very low, and if something goes wrong, we'll sue them for fraud and end up getting a further price reduction!"

After his conversation with Upman, Buyer met with a sales representative for Auto, and made a contract for the needed equipment with Auto on behalf of C & J. At the insistence of C & J, and with the assurance by Auto's sales representative that only new parts and components would be used, the contract with Auto contained, among its terms, a specification that only new components or parts would be used in assembling the equipment to be delivered to C & J.

At the time of the making of the contract, the Auto representative was aware that at least some of the components and parts would be used or refurbished, rather than new. This was not told to Buyer or anyone else at C & J.

Soon after delivery to C & J, a series of break-downs occurred. A repairperson C & J hired to fix the equipment brought to C & J's attention that many of parts which had failed showed serious signs of wear and prior use, were not new, and that that situation probably existed throughout the system.

C & J started a lawsuit for fraud against Auto, since C & J had already lost profits on printing jobs they were unable to accept due to the breakdowns, and had decided to use another supplier for future equipment purchases.

Please decide if C & J should be successful in its lawsuit. In so doing, mention all the legal rules or elements necessary for success in a fraud lawsuit, and choose and mention facts from the problem which, together with your analysis, show that each necessary element or rule has (or hasn't) been met.

This question needs to be answered for studying purposes. It is not intended to be submitted for grading. I hope this clarifies the situation.