Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

IRAC #2 Subway advertises and sells foot-long sandwiches. Because of the recession caused by CONVID-19, the CEO of Subway decides that instead of raising the

IRAC #2

Subway advertises and sells foot-long sandwiches. Because of the recession caused by CONVID-19, the CEO of Subway decides that instead of raising the prices of the foot-long sandwiches, he would make the sandwiches 11 inches instead of 12 inches, and still call them "foot-long" sandwiches. He was determined that no customer would realize 1 inch difference. This adjustment would lower food costs by over $1 million per year, based on the over 8 million foot-long sandwiches Subway sells worldwide.

Jack, a long time customer of Subway, buys a foot-long sandwich and realizes that the sandwich is shorter then normal (only 11 inches). Jack comes to you office and wants to file a fraudulent misrepresentation lawsuit against Subway.

Below are the elements in which must be proved for the subway to be liable.

Need to prove: 1. A misrepresentation of material facts or conditions with knowledge that they are false or with reckless disregard for the truth. 2. An intent to induce another party to rely on the misrepresentation. 3. A justifiable reliance on the misrepresentation by the deceived party. 4. Damages suffered as a result of that reliance. 5. A causal connection between the misrepresentation and the injury suffered.

Are all of these elements there? If so how are they present?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Entrepreneurship

Authors: Andrew Zacharakis, William D Bygrave

5th Edition

9781119563099

Students also viewed these Law questions