Fruit Industries Research Foundation v. National Cash Register

Citation
'''Fruit Indus. Res. Found. v. National Cash Register Co.,''' 406 F.2d 546 (9th Cir. 1969) ([

Factual Background:

Food Industries, purchased a data processing computer, known as the NCR390, from National Cash Register (N.C.R.). Food Industries claims that N.C.R., through its sales agent, fraudulently misrepresented that the NCR390 was suitable, appropriate, and adequate for service bureau data processing and computer work and that N.C.R. would aid and assist Food Industries by referring customers to Food Industries' computer service bureau so that there would be no need for Food Industries to maintain a sales force of its own to procure patronage.

Trial Court Proceedings:

The trial court determined that Food Industries had failed as a matter of law to present sufficient evidence from which a trier of fact could properly find from clear, cogent, and convincing evidence that the nine essential elements of fraud had been proved as required by Washington law.

Appellate Court Proceedings:

The appellate court affirmed and ruled that lack of business experience of the vendee was a factor to be considered but a vendee was not permitted to say that he was taken advantage of if he had means of acquiring the information, or if, because of his business experience or his prior dealings, he should have acquired further information before he acted. The appellate court found that the negotiating parties were experienced businessmen, that the evidence showed that the computer's lack of printout speed was already known to Food Industries, and that the business impact of its slowness could have been foreseen by Food Industries.