Case Problem:
On August 23, 1995, Climaco Guzman entered into a commercial janitorial services franchise agreement with Jan-Pro Cleaning Systems, Inc., in Rhode Island for a franchise fee of $3,285. In the agreement, Jan-Pro promised to furnish Guzman with “one (1) or more customer account(s) . . . amounting to $8,000.00 gross volume per year. . . . No portion of the franchise fee is refundable except and to the extent that the Franchisor, within 120 business days following the date of execution of the Franchise Agreement, fails to provide accounts.” By February 19, Guzman had not received any accounts and demanded a full refund. Jan-Pro promised “accounts grossing $12,000 per year in income.” Despite its assurances, Jan-Pro did not have the ability to furnish accounts that met the stated requirements. In September, Guzman filed a suit in a Rhode Island state court against Jan-Pro, alleging in part fraudulent misrepresentation. Should the court rule in Guzman’s favor? Why or why not?
Your answer must be, typed, double-spaced, Times New Roman font (size 12), one-inch margins on all sides, APA format and also include references.