Reference no: EM132250485

Business law discussion

In 1987, United Parcel Service Co. and United Parcel Service of America, Inc. (Together known as UPS), decided to change the parcel delivery business from relying on contract carriers to establishing its own airline. During the transition which took 16 months, UPS hired 811 pilots. At the time UPS expressed a desire to hire pilots who remained throughout that period with its contract carriers, Orion Air. The UPS representative met with the more than 50 Orion pilots and made promises of future employment. John Rickert, a captain with Orion, was one of the pilots. Orion ceased operation after the UPS transition, and UPS did not hire Rickert, who obtained employment about six months later as a second officer with American Airlines, but at a lower salary. Rickert filed a suit in a Kentucky state court against UPS, claiming in part, fraud based upon the promises made by the UPS representative. UPS filed a motion for a directed verdict. What are the elements for a cause of action based on fraudulent misrepresentation? In whose favor should the court rule in this case and why? Are the elements of fraud met? Discuss.