ALL-TECH TELECOM, INC. V. AMWAY CORPORATION
174 F.2d 862 (7th Cir. 1999)
NATURE OF THE CASE: This was an appeal from a summary judgment dismissal. All-Tech (P)
Plaintiff telecommunications corporation appealed a judgment, which granted summary judgment
to Amway (D) marketer on P's claims of intentional and negligent misrepresentation and
promissory estoppel.
FACTS: In 1987, Amway (D) offered distributors a new product called the TeleCharge phone.
All-Tech (P) was created for the very purpose of being an Amway distributor of these phones.
P bought a large number of phones but eventually for a number of reasons, D withdrew from
the market place in 1992. P claims that it was lured into this venture by a series of
misrepresentations in that P had done extensive research, it was approved in all 50 states
and that each phone would be expected to provide $750 in annual revenue and that the carrier
selected for this service, ITI was the largest company of its kind and that the purchase of
the phones would have to deal with ITI as the phone could not be configured to work with
another carrier. The lower court dismissed all of P's claims of misrepresentation based on
the doctrine of economic loss. P's claims for breach of warranty were tried and the jury
found a breach but awarded no damages. P appealed.
ISSUE:
RULE OF LAW:
HOLDING AND DECISION:
LEGAL ANALYSIS:
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