Case Problem:
The Meehans entered into a franchise agreement with Consumers Club. However, the Meehans’ franchise failed. The Meehans alleged that, just before they entered into the franchise agreement, Consumers Club made false statements and misleading representations to them about (1) earnings, (2) success rates, (3) pricing, and (4) warranties, support, and service. The district court dismissed both counts, determining that the express disclaimers contained in the franchise agreement precluded the Meehans from proving justifiable reliance, if any misrepresentations were made. Meehan contended the disclaimers do not defeat the misrepresentation claim because they do not contain evidence of whether actual representations were made and relied on. How do you think the court ruled regarding the alleged false and misleading representations made regarding the Meehans’ franchise? ( Hint: Review the discussion on Case and the power of written franchise agreements.) [ Meehan v. United Consumers Club Franchising Corp., 312 F.3d 909 (2002).]
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.