In Harley-Davidson Motor Co.,v.PowerSports,Inc.,the court permitted PowerSports to retain their Harley-Davidson franchise because their decision to become a publicly owned corporation had nothing to do with their commitment to sales and service so it was deemed not material to the negotiations so no fraud occurred.

Question

Quizplus · Accepted Answer

The promise to remain a private company was a key negotiating point and PowerSport's failure to disclose their plans was deemed a fraudulent misrepresentation allowing rescission of the contract.