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A Day At The MoviesEdit

Q. 1. Answer:

In order for fraudulent misrepresentation to occur, a plaintiff must allege and prove the following elements: 1. A representation of fact was made 2. The representation was false 3. When made, the representation was known to be false, or was made recklessly without knowledge of its truth 4. It was made with the intention that the plaintiff should rely upon it 5. The plaintiff reasonably relied 6. The plaintiff suffered damages as a result.


In our case the representation is not innocent, because it was not made under these circumstances: 1. Untrue assertion of fact 2. Assertion relates to material fact 3. Actual reliance 4. Justifiable reliance.

In our case had Tommy knew that the movie was going to start at 1:20 PM, he may or may not had purchased the ticket. The fact is that the cashier told him that the movie starts at 1:00 PM.

Now, how reasonable was it for Tommy to rely on the facts presented to him? Whether a party’s reliance upon a misrepresentation was reasonable is a question of fact. A party is justifies in relying upon a representation made to the other party as a positive statement of fact, when an investigation would be required to ascertain its falsity.

In our case Tommy had no way of investigating the truth, because the ticket was missing explanations, and he had not been at the movies for a long time.

Q. 2. Answer:

The ethical issue here is about the captivity of the Tommy, because as stated in the text he was not able to walk freely in the darkness (when the lights went off).

Q. 3. Answer:

As we discussed during the meeting it depends on the statistical analysis. Tommy has to be reimbursed for the damages (the ticket amount).

Q. 4. Answer:

When, as a consulting team, we suggest that it’s more than 10%, and the consortium rejects our suggestion (null hypothesis Ho), the Type I error occurs when we turn out to be right. When, as a consulting team, we suggest that it’s more than 10%, and the consortium fails to rejects our suggestion (null hypothesis Ho), the Type II error occurs when we turn out to be wrong.

Q. 5. Answer:

It depends on the statistical analysis. Chances for fighting in the court for class-action are more because 300 is a better representative of the “Population�?, rather than 100.

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