TO: Mr. Plex, Owner, Royal 16 Theater
FROM: Team 8
RE: Analysis of Liability for Fraud
Based off of your request, we have completed an analysis concerning Royal 16 Theater’s liability for fraud assumed by the customer, Tommy. Please contact us if any additional information is needed.
July at the Multiplex
What are the standards of selling a service or product so the customer will not get furious? If we tried out best but they are still unsatisfied, what kind of response should we give? In this case “July at the Multiplex”, the plaintiff, Tommy, was not satisfied with the service that was provided with Royal 16 Theater. He demanded the money that he paid be returned. The theater owner, Mr. Plex …show more content…
The first trial court dismissed the charges and found that the buyers did not prove the elements of fraudulent misrepresentation. When the plaintiffs appealed the results the second court reversed the decision of the first court and decided that the plaintiffs did prove fraudulent misrepresentation. The property sold by the defendants caused reasonable reliance upon the plaintiffs and there were damages because of the reliance. The property was sold to them on the idea that the property was indeed a duplex when the defendants had prior knowledge that it in fact was not a duplex. The defendants knew that the plaintiff would rely on the representations and conducted business anyway. This case relates perfectly to the situation going on between Tommy and Royal 16 Theater because both cases involve the plaintiffs trying to recover for fraudulent misrepresentation. In our opinion, Royal 16 Theater does have some liability for fraudulent misrepresentation when they tell their customers the movie is supposed to start at 1:00 pm, but they play twenty minutes of previews before. A simple solution to this issue could be resolved by printing disclaimers on the tickets sold to a customer that warns them about the commercials before they enter into the theater. That way when customers come to accept the offer from the theater they are bound by the method of acceptance and they agree to the commercials playing before the