Question
Zeinab applies to Radio Shack, a distributor of radios manufactured by Schaq O'Neil, for a dealer franchise to sell O'Neil's products. The franchise is revocable
Zeinab applies to Radio Shack, a distributor of radios manufactured by Schaq O'Neil, for a "dealer franchise" to sell O'Neil's products. The franchise is revocable at will. Radio Shack erroneously tells Zeinab that O'Neil accepted her application and she can begin hiring salespeople and soliciting orders. Radio Shack also promises Zeinab that she'll soon receive an initial delivery of at least 30 radios. Zeinab spends $15,000 in preparing to do business but does not receive the franchise or any radios. Is Radio Shack liable to Zeinab and if so, for what? Can she claim lost profit on the radios?
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