Goodman (defendant) was a distributor for Emerson Radio and Phonograph Corporation. With Goodman’s encouragement, Dicker (plaintiff) applied for a dealer franchise to sell Emerson products. Goodman told Dicker that Dicker would be granted a franchise and would receive an initial order of thirty to forty radios. Dicker hired salesmen and started soliciting radio orders from customers. Dicker did not receive any radios. After some time, Goodman reported that Dicker would not be getting a radio franchise after all. Dicker sued Goodman for breach of contract. The trial court held that Dicker had not proven the existence of a contract. Nevertheless, Goodman’s statements and behavior had caused Dicker to take action in reliance on Goodman’s representations. Goodman was thus estopped from denying the existence of a contract. The court awarded Dicker $1500 in damages, which covered Dicker’s $1150 in cash outlays and loss of $350 anticipated profits. Goodman appealed to the United States Court of Appeals for the District of Columbia Circuit.