The Legal Environment of Business: Text and Cases
The Legal Environment of Business: Text and Cases
10th Edition
ISBN: 9781337535878
Author: Frank B. Cross; Roger LeRoy Miller
Publisher: Cengage Learning US
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Chapter 16, Problem 4CT
Summary Introduction

Case summary: Construction company BH visited a hotel of company HIF in city T to estimate the cost of the renovation of the hotel. Company HIF offered company BH to renovate the hotel which will require ten years to recover the cost. Construction company BH bought the hotel, renovated it and operated it as a hotel HAI. Person GA, who was the executive of the company HIF decided to franchise to another local hotel. HIF asked major renovations to be done by hotel HAI that spent $3 million on renovation. HIF refused to renew the franchise. HAI sold the hotel for $5million and filed a suit against HIF for fraud in Arkansas state court.

To find : The purpose of punitive damages.

Summary Introduction

Case summary: Construction company BH visited a hotel of company HIF in city T to estimate the cost of renovation of the hotel. Company HIF offered company BH to renovate the hotel which will require ten years to recover the cost. Construction company BH bought the hotel, renovated it and operated it as a hotel HAI. GA who was the executive of HIF decided to franchise to another local hotel. HIF asked major renovations to be done by hotel HAI that spent $3 million on the renovation. HIF refused to renew the franchise. HAI sold the hotel for $5million and filed a suit against HIF for fraud in Arkansas state court.

To find : The conduct of company HIF to warrant punitive award.

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