Mugge -- Under the common law (under which all US states excepting Lousiana and most British commonwealth jurisdictions function), fraud and deceit are essentially the same thing. Fraud is generally criminal, but it depends on the degree and I can say fairly confidently that Wonderboy's actions would almost certainly not give rise to criminal prosecution. He would be, however, liable for civil damages caused to the buyer, and punitive damages on top of those to deter future such conduct.
A breach of contract, however, is never criminal (except perhaps in very limited circumstances) and does not give rise to punitive damages, only damages to compensate. Thus, if Wonderboy were simply honest and said to the buyer that he would not be complying with the contract, the buyer's only recourse would be to recover whatever damages caused by Wonderboy's breach (probably very little if nothing given that the price on the PBs is coming down although perhaps the buyer would have a claim for damages on the lost use for a couple of days). This is all academic however as I think this is really a morality question, not one that would ever be dealt with in the courts.
|