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1. Eulrich, an auto body mechanic who had never operated a business, entered into a Snap-On Tools franchise agreement. For $22,000 invested from his...

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Under what theory might Eulrich Recover?

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l. Eulrich, an auto body mechanic who had never operated a business, entered into a
Snap-On Tools franchise agreement. For $22,000 invested from his savings and the
promise of another $22,000 from the sale of inventory, he was provided a truck full of
tools. His job was to drive around his territory and sell them. The agreement allowed
termination by either party; if Eulrich terminated, he was entitled to resell to Snap-On
any new tools he had remaining. Men he complained that his territory was not
profitable, his supervisors told him to work it harder, that anybody could make money
with Snap-On’s marketing system. (In fact, the evidence was the system made money
for the supervisors and little for dealers; dealers quickly failed and were replaced by
new recruits.) Within several months Eulrich was out of money and desperate. He
tried to “check in” his truck to get money to pay his household bills and uninsured
medical bills for his wife; the supervisors put him off for weeks. On the check-in day,
the exhausted Eulrich’s supervisors berated him for being a bad businessman, told
him no check would be forthcoming until all the returned inventory was sold, and
presented him with a number of papers to sign, including a “Termination Agreement”
whereby he agreed to waive any claims against Snap-On; he was not aware that was
what he had signed. He sued to rescind the contract and for damages. The defendants
held up the waiver as a defense. Under what theory might Eulrich recover?Eulrich v.
Snap—On Tools Corp, 853 P.2d 1350 (Dr. Ct. App. 1993).

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