Law for Business 10th Edition by James Barnes,Terry Dworkin,Eric Richards

Exercise 2

Hord was working for GE when he started looking for another job. At ERIM, during a job interview, he was given a copy of a financial summary for the previous fiscal year rather than the current one. The financial position of the company had significantly deteriorated during that time. ERIM discussed Hord's developing a new program in high-performance computing, and there was a discussion of how long ERIM would support it. Hord was hired; a year later his employment was reduced to 80 percent, and six months later he was notified he would be laid off. He sued ERIM for fraud, alleging that ERIM knowingly made false representations regarding its position and ability to fund long-range projects in order to get Hord to work for it. Will his claim be successful? Explain.