This section contains the nature of the case and procedural background.

Goodman (D) was the local distributor of Emerson Radio. Dicker (P) was encouraged to apply for an Emerson franchise with the knowledge and encouragement of D. D then induced P to expend monies to do business under the franchise including employment of salesmen and solicitation of orders for radios. D represented that the franchise had been accepted and that P would receive an initial delivery of 30 radios. None of this transpired. Eventually, D informed P that there would be no deal. P sued D and won a judgment for $1500 of which $350 was for the anticipated profits on the sale of the thirty radios. D appealed; no liability should have arisen because the franchise agreement was at will.

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