Margroff v. Cornwell Quality Tools, Inc.

610 N.E.2d 1006, 81 Ohio App. 3d 174, 1991 Ohio App. LEXIS 5211
CourtOhio Court of Appeals
DecidedOctober 30, 1991
DocketNo. 15019.
StatusPublished
Cited by22 cases

This text of 610 N.E.2d 1006 (Margroff v. Cornwell Quality Tools, Inc.) is published on Counsel Stack Legal Research, covering Ohio Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Margroff v. Cornwell Quality Tools, Inc., 610 N.E.2d 1006, 81 Ohio App. 3d 174, 1991 Ohio App. LEXIS 5211 (Ohio Ct. App. 1991).

Opinion

Cacioppo, Presiding Judge.

The case at bar arises out of a dealership agreement entered into between the appellants, Duane D. and Janet Margroff, and Cornwell Quality Tools, Inc. (“Cornwell”). Pursuant to this agreement, the Margroffs were granted a territory in Jacksonville, Florida in which to sell Cornwell tools. The Margroffs paid Cornwell $10,000 and executed a note for $20,000 on the day the dealership agreement was signed. Duane Margroff also signed a document informing him that he had no obligation to purchase any materials for a six-month period.

After obtaining a truck and the necessary materials, Duane Margroff commenced business. After a short period of little success, Duane Margroff, believing that Cornwell had made misrepresentations, attempted to return the truck and materials and recoup his investment. Dissatisfied with the credit *176 given by Cornwell, the Margroffs brought suit alleging that Cornwell had violated R.C. Chapter 1334, governing the sale of business opportunity plans. A jury, finding that R.C. Chapter 1334 did not apply, held in favor of Cornwell.

Assignment of Error No. I

“The trial court erred in failing to grant a new trial for reason that the judgment is against the manifest weight of the evidence and contrary to law.”

It is well established that a judgment supported by some competent, credible evidence going to all the essential elements of the case will not be reversed by a reviewing court as being against the manifest weight of the evidence. C.E. Morris Co. v. Foley Constr. Co. (1978), 54 Ohio St.2d 279, 8 O.O.3d 261, 376 N.E.2d 578, syllabus. A judgment of a trial court must be affirmed if any valid grounds are found on review to support it. Joyce v. General Motors Corp. (1990), 49 Ohio St.3d 93, 96, 551 N.E.2d 172, 174.

The disposition of this assignment of error is necessarily dependent upon the application of R.C. Chapter 1334 to the situation at bar. R.C. Chapter 1334 applies to business opportunity plans. R.C. 1334.01(D) defined a “business opportunity plan” as:

“ ‘Business opportunity plan’ means an agreement in which a purchaser obtains the right to offer, sell, or distribute goods or services under all of the following conditions:
“(1) The goods or services are supplied by the seller, a third person with whom the purchaser is required or advised to do business by the seller, or an affiliated person;
“(2) The purchaser is required to make an initial payment greater than one hundred dollars, but less than fifty thousand dollars, to the seller or an affiliated person to begin or maintain the business opportunity plan;
“(3) The seller makes any of the following representations:
“(a) That the purchaser will be provided with retail outlets or accounts, or assistance in establishing retail outlets or accounts, for the sale or distribution of the goods or services;
“(b) That the purchaser will be provided locations, or assistance in finding locations, for vending machines, electronic games, rack displays, or any other equipment or display for use in the sale or distribution of the goods or services;
“(c) That the purchaser can earn a profit in excess of the initial payment;
“(d) That there is a market for the goods or services;
*177 “(e) That there is a buy-back arrangement.”

In analyzing this statute and its relation to the situation at bar, the essential issue becomes whether an initial payment was required. R.C. 1334.01(G) defined “initial payment” as:

“ * * * * the total amount a purchaser is obligated to pay prior to or during the first six months after commencing operation of the business opportunity plan. If an agreement sets forth a specific total sale price for purchase of a business opportunity plan, which is to be paid partially as a down payment, followed by specific monthly payments, ‘initial payment’ means the entire total sale price. ‘Initial payment’ does not include any payment for sales demonstration equipment and materials, so long as all of the following apply:
“(1) The seller or an affiliated person furnishes the sales demonstration equipment and materials to the purchaser at cost, and does not realize any profit, commission, fee, rebate, or other benefit from furnishing the equipment and materials;
“(2) The total price of the sales demonstration equipment and materials is less than five hundred dollars;
“(3) The sales demonstration equipment and materials are for use in making sales, and are not for resale.”

In the case at bar, there was conflicting evidence as to whether an initial payment was required, and this issue essentially became one of credibility. Jay Johnson, testifying on behalf of Cornwell, stated that a person could be a Cornwell dealer for six months without making a payment of any kind. The Margroffs testified to the contrary. “On the trial of a case, either civil or criminal, the weight to be given the evidence and the credibility of the witnesses are primarily for the trier of the facts.” State v. DeHass (1967), 10 Ohio St.2d 230, 39 O.O.2d 366, 227 N.E.2d 212, paragraph one of the syllabus. Given the substantial evidence on both sides of the initial payment issue, we cannot conclude that the jury’s determination of this issue in Cornwell’s favor was in error.

Accordingly, the first assignment of error is overruled.

Assignment of Error No. II

“The trial court committed prejudicial error in refusing to include in its charge to the jury an instruction under R.C. 1334.15.”

Jury instructions must be viewed in their totality, and if the law is clearly and fairly expressed, no reversal will be predicated upon an error in a portion of the charge. Yeager v. Riverside Methodist Hosp. (1985), 24 Ohio App.3d 54, 55, 24 OBR 107, 109, 493 N.E.2d 559, 561. Furthermore, an error *178 in instructions given in a civil trial is not grounds for reversal unless it is calculated to mislead the jury to the detriment of the party seeking reversal. Laverick v. Children's Hosp. Med. Ctr. of Akron (1988), 43 Ohio App.3d 201, 202, 540 N.E.2d 305, 307.

Appellants contend that a document executed by the parties constituted a waiver in direct violation of R.C. 1334.15, and that a jury instruction should have been given in this regard. The document in question provides in part.

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Bluebook (online)
610 N.E.2d 1006, 81 Ohio App. 3d 174, 1991 Ohio App. LEXIS 5211, Counsel Stack Legal Research, https://law.counselstack.com/opinion/margroff-v-cornwell-quality-tools-inc-ohioctapp-1991.