Walter contacted his friend Buddy Wood, who was a salesman for the Dallas Bankston Nissan dealership, to discuss purchasing a pickup truck.Buddy represented to Walter that the value of the high-performing Nissan truck was $35,000.Walterstest drove the pickup in question and agreed to purchase it.Wood prepared a Workup Sheet which showed the pickup to be a 2020 model.He also prepared an Odometer Statement and a Warranty Sheet, both of which showed the pickup to be a 2019 model.Walter purchased the pickup for $33,000 and took possession of the pickup.On his wayout,hethanked Buddy for his excellent service.

Several days later, Walter experienced mechanical difficulty with the pickup and returned it to Bankston, who repaired the problem at no cost. Walter subsequently experienced additional problems with the pickup.During this time, Walter's credit union notified him that the truck was a 2019 model, not a 2020 model, and that it would not finance the truck.The actual value of the pickup as received was $28,000. Walter then demanded that Bankston take back the pickup.Bankston refused and Walter filed suit.

(a)Assuming Walter will prevail in this lawsuit, calculate the damages for fraud using both the (1) benefit-of-the-bargain rule and (2) the out-of-pocket rule.Define the rules and then complete the calculation.

(b) Would Walter prefer the benefit-of-the-bargain damages or the out-of-pocket damages?Explain.