Will subway be liable for fraudulent misrepresentation

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Reference no: EM133499794

Make an IRAC of fraudulent misrepresentation based on the scenario and rule as follows:

Case Scenario:

Subway advertises and sells foot-long sandwiches. Because of the recession caused by COVID-19, the CEO of Subway decided 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 longtime customer of Subway, buys a foot-long sandwich and realizes that the sandwich is shorter than normal (only 11 inches). Jack wants to file a fraudulent misrepresentation lawsuit against Subway.

Issue: Will Subway be liable for fraudulent misrepresentation?

Rule: To establish a prima facie case for fraudulent misrepresentation, the plaintiff must prove that the defendant set misrepresentation of a material fact and intended to deceive, the deceived party must justifiably rely on the misrepresentation, damages incurred by the deceived party, and a causal connection between the fraudulent statement and the damages suffered.

Reference no: EM133499794

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