Worden entered into an agreement that allowed Yazdianpour to be the exclusive seller of Safebood Technologies patented products outside of the United States. Worden knew that the patents were only valid in the United States, but did not tell Yazdianpour who learned that fact when he tried to sell licenses for the products. He sued Worden for fraud. The appeals court held that Worden could:

Question

Worden entered into an agreement that allowed Yazdianpour to be the exclusive seller of Safebood Technologies patented products outside of the United States. Worden knew that the patents were only valid in the United States, but did not tell Yazdianpour who learned that fact when he tried to sell licenses for the products. He sued Worden for fraud. The appeals court held that Worden could:​

Quizplus · Accepted Answer

Worden knew that the patents were only valid in the United States but did not disclose that fact to Yazdianpour. This constitutes intentional fraud, making Worden liable for fraud. The lack of protection rights outside the United States does not absolve Worden of his duty to disclose material facts to Yazdianpour. The absence of an upfront payment is irrelevant in determining liability for fraud or misrepresentation.

Worden Entered into an Agreement That Allowed Yazdianpour to Be