People v. Forest E. Olson, Inc.

The People appeal a judgment following a directed verdict entered in favor of defendant Forest E. Olson, Inc. (FEO) in a civil case.

During 1974 and 1975, FEO published newspaper advertisements listing a total of 926 addresses. The ads said the addresses were of homes in Orange and Riverside Counties which FEO had sold within four or eight days. The addresses were compiled by FEO’s computer department and given to John Bustetter, a first vice president in charge of marketing and the FEO officer directly responsible for the ad campaign. The computer printout included 286 homes which were part of subdivision developments and which had never been occupied before they were sold by FEO. Although FEO was unable to sell some of these new homes for over a year, it was FEO’s practice to not write up a listing agreement for each house until the house was sold; therefore, the computer printout showed these homes as having been sold on the same day they were listed. Bustetter made no effort to verify the accuracy of the printout and the addresses of these new homes appeared in the advertisements. Furthermore, the advertisements listed 50 additional homes which were not sold in the…