Goodman v. Dicker

169 F.2d 684 (D.C. Cir. 1948)

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Nature of the Case

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Facts

Goodman (D) was the local distributor of Emerson Radio. Dicker (P) was encouraged to apply for an Emerson franchise with the knowledge and encouragement of D. D then induced P to expend monies to do business under the franchise including employment of salesmen and solicitation of orders for radios. D represented that the franchise had been accepted and that P would receive an initial delivery of 30 radios. None of this transpired. Eventually, D informed P that there would be no deal. P sued D and won a judgment for $1500 of which $350 was for the anticipated profits on the sale of the thirty radios. D appealed; no liability should have arisen because the franchise agreement was at will.