Clark (D) purchased a car from Boise (P) with the representation that the car was new with only 165 miles on it. In fact, the car was a demonstrator, which had the odometer turned back from 6,968 miles. The salesmen knew the true situation of the car. D traded in his car and issued checks for the balance but stopped payment when it was discovered that the car was used. P sued on the checks and D counterclaimed for damages for breach of contract and deceit and punitive damages. The jury found for P on the checks on the theory that the contract had been affirmed rather than rescinded and for D for $350 (loss in value). The jury also awarded D $12,500 in punitive damages. P appealed.

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