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All-Tech Telecom, Inc. v. Amway Corp.

United States Seventh Circuit Court of Appeals
174 F.3d 862 (1999)


Facts

All-Tech Telecom, Inc. (All-Tech) (plaintiff) purchased a large number of TeleCharge phones from Amway Corp. (defendant), which were a new product and service intended for consumers in hotels and restaurants. For various reasons the TeleCharge program failed, and the phones were withdrawn from the market. All-Tech brought claims against Amway for intentional and negligent misrepresentation, promissory estoppel, and breach of warranty, claiming that it was induced to enter and stay in the failing venture by Amway’s misrepresentations, including that Amway had thoroughly researched the TeleCharge program, and that the service would be the best in the nation. Some of these statements were corrected before All-Tech bought the TeleCharge phones, while some statements were made by one of Amway’s distributors. The district court granted summary judgment for Amway on the claims of intentional and negligent misrepresentation and promissory estoppel. The breach of warranty claim was allowed to go to the jury, which found for All-Tech, but did not award damages. All-Tech now appeals the district court’s grant of summary judgment on the misrepresentation and promissory estoppel claims.

Rule of Law

Issue

Holding and Reasoning (Posner, C.J.)

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