{ "id": 4233529, "name": "SONGWOOYARN TRADING COMPANY, Ltd. Plaintiff v. SOX ELEVEN, INC. and UNG CHUL AHN, Defendants and Third Party Plaintiffs v. JAE CHEOL SONG, Third Party Defendant", "name_abbreviation": "Songwooyarn Trading Co. v. Sox Eleven, Inc.", "decision_date": "2011-06-21", "docket_number": "No. COA10-939", "first_page": "49", "last_page": "59", "citations": [ { "type": "official", "cite": "213 N.C. App. 49" } ], "court": { "name_abbreviation": "N.C. Ct. App.", "id": 14983, "name": "North Carolina Court of Appeals" }, "jurisdiction": { "id": 5, "name_long": "North Carolina", "name": "N.C." }, "cites_to": [ { "cite": "617 S.E.2d 664", "category": "reporters:state_regional", "reporter": "S.E.2d", "case_ids": [ 12633745 ], "year": 2005, "pin_cites": [ { "page": "671" } ], "opinion_index": 0, "case_paths": [ "/se2d/617/0664-01" ] }, { "cite": "623 S.E.2d 281", "category": "reporters:state_regional", "reporter": "S.E.2d", "case_ids": [ 12634600 ], "year": 2005, "pin_cites": [ { "page": "284" } ], "opinion_index": 0, "case_paths": [ "/se2d/623/0281-01" ] }, { "cite": "344 S.E.2d 297", "category": "reporters:state_regional", "reporter": "S.E.2d", "year": 1986, "pin_cites": [ { "page": "300", "parenthetical": "\"The only such 'issue' answered by the jury was whether defendant's misrepresentations to plaintiff were conduct in commerce or affecting commerce, which was appropriate. The jury's answer to this issue in plaintiff's favor was unquestionably supported by the evidence.\"" } ], "opinion_index": 0 }, { "cite": "81 N.C. App. 421", "category": "reporters:state", "reporter": "N.C. App.", "case_ids": [ 8523445 ], "year": 1986, "pin_cites": [ { "page": "425" } ], "opinion_index": 0, "case_paths": [ "/nc-app/81/0421-01" ] }, { "cite": "333 S.E.2d 254", "category": "reporters:state_regional", "reporter": "S.E.2d", "year": 1985, "pin_cites": [ { "page": "256" } ], "opinion_index": 0 }, { "cite": "314 N.C. 284", "category": "reporters:state", "reporter": "N.C.", "case_ids": [ 4694301 ], "year": 1985, "pin_cites": [ { "page": "286" } ], "opinion_index": 0, "case_paths": [ "/nc/314/0284-01" ] }, { "cite": "N.C. Gen. Stat. \u00a7 1-75.4", "category": "laws:leg_statute", "reporter": "N.C. Gen. Stat.", "year": 2009, "pin_cites": [ { "page": "(1)", "parenthetical": "granting personal jurisdiction \"[i]n any action, whether the claim arises within or without this State, in which a claim is asserted against a party who when service of process is made upon such party . . . [i]s a natural person domiciled within this State\"" } ], "opinion_index": 0 }, { "cite": "N.C. Gen. Stat. \u00a7 55-15-01", "category": "laws:leg_statute", "reporter": "N.C. Gen. Stat.", "pin_cites": [ { "page": "(b)(5)" } ], "opinion_index": 0 }, { "cite": "N.C. Gen. Stat. \u00a7 55-15-02", "category": "laws:leg_statute", "reporter": "N.C. Gen. Stat.", "year": 2009, "pin_cites": [ { "page": "(a)" } ], "opinion_index": 0 }, { "cite": "450 S.E.2d 744", "category": "reporters:state_regional", "reporter": "S.E.2d", "year": 1994, "pin_cites": [ { "page": "746" } ], "opinion_index": 0 }, { "cite": "338 N.C. 508", "category": "reporters:state", "reporter": "N.C.", "case_ids": [ 2519615 ], "year": 1994, "pin_cites": [ { "page": "512" } ], "opinion_index": 0, "case_paths": [ "/nc/338/0508-01" ] }, { "cite": "548 S.E.2d 704", "category": "reporters:state_regional", "reporter": "S.E.2d", "year": 2001, "pin_cites": [ { "page": "710-11" } ], "opinion_index": 0 }, { "cite": "353 N.C. 647", "category": "reporters:state", "reporter": "N.C.", "case_ids": [ 135724 ], "year": 2001, "pin_cites": [ { "page": "656" } ], "opinion_index": 0, "case_paths": [ "/nc/353/0647-01" ] }, { "cite": "519 S.E.2d 308", "category": "reporters:state_regional", "reporter": "S.E.2d", "weight": 2, "year": 1999, "pin_cites": [ { "page": "312" } ], "opinion_index": 0 }, { "cite": "351 N.C. 27", "category": "reporters:state", "reporter": "N.C.", "case_ids": [ 1155931 ], "year": 1999, "opinion_index": 0, "case_paths": [ "/nc/351/0027-01" ] }, { "cite": "N.C. Gen. Stat. \u00a7 75-1.1", "category": "laws:leg_statute", "reporter": "N.C. Gen. Stat.", "weight": 2, "year": 2009, "pin_cites": [ { "page": "(a)" }, { "page": "(b)" } ], "opinion_index": 0 }, { "cite": "529 S.E.2d 676", "category": "reporters:state_regional", "reporter": "S.E.2d", "weight": 2, "year": 2000, "pin_cites": [ { "page": "681" } ], "opinion_index": 0 }, { "cite": "352 N.C. 61", "category": "reporters:state", "reporter": "N.C.", "case_ids": [ 685063 ], "year": 2000, "pin_cites": [ { "page": "68" } ], "opinion_index": 0, "case_paths": [ "/nc/352/0061-01" ] }, { "cite": "584 S.E.2d 846", "category": "reporters:state_regional", "reporter": "S.E.2d", "year": 2003, "pin_cites": [ { "page": "852" } ], "opinion_index": 0 }, { "cite": "160 N.C. App. 90", "category": "reporters:state", "reporter": "N.C. App.", "case_ids": [ 8954364 ], "year": 2003, "pin_cites": [ { "page": "99" } ], "opinion_index": 0, "case_paths": [ "/nc-app/160/0090-01" ] }, { "cite": "513 S.E.2d 320", "category": "reporters:state_regional", "reporter": "S.E.2d", "year": 1999, "pin_cites": [ { "page": "327", "parenthetical": "quoting Restatement (Second) of Torts \u00a7 552 cmt. e" } ], "opinion_index": 0 }, { "cite": "350 N.C. 214", "category": "reporters:state", "reporter": "N.C.", "case_ids": [ 132102 ], "year": 1999, "pin_cites": [ { "page": "225", "parenthetical": "quoting Restatement (Second) of Torts \u00a7 552 cmt. e" } ], "opinion_index": 0, "case_paths": [ "/nc/350/0214-01" ] }, { "cite": "489 S.E.2d 880", "category": "reporters:state_regional", "reporter": "S.E.2d", "year": 1997, "pin_cites": [ { "page": "888", "parenthetical": "\"[T]he trial court should not dismiss the complaint unless it appears beyond doubt that the plaintiff could prove no set of facts in support of his claim which would entitle him to relief.\" (citations and internal quotation marks omitted)" } ], "opinion_index": 0 }, { "cite": "347 N.C. 97", "category": "reporters:state", "reporter": "N.C.", "case_ids": [ 551301 ], "year": 1997, "pin_cites": [ { "page": "111-12", "parenthetical": "\"[T]he trial court should not dismiss the complaint unless it appears beyond doubt that the plaintiff could prove no set of facts in support of his claim which would entitle him to relief.\" (citations and internal quotation marks omitted)" } ], "opinion_index": 0, "case_paths": [ "/nc/347/0097-01" ] }, { "cite": "172 N.C. App. 427", "category": "reporters:state", "reporter": "N.C. App.", "case_ids": [ 8320345 ], "year": 2005, "pin_cites": [ { "page": "438" } ], "opinion_index": 0, "case_paths": [ "/nc-app/172/0427-01" ] }, { "cite": "65 S.E. 644", "category": "reporters:state_regional", "reporter": "S.E.", "year": 1909, "pin_cites": [ { "page": "645" } ], "opinion_index": 0 }, { "cite": "151 N.C. 80", "category": "reporters:state", "reporter": "N.C.", "case_ids": [ 8653956 ], "year": 1909, "pin_cites": [ { "page": "80" } ], "opinion_index": 0, "case_paths": [ "/nc/151/0080-01" ] }, { "cite": "140 S.E.2d 311", "category": "reporters:state_regional", "reporter": "S.E.2d", "year": 1965, "pin_cites": [ { "page": "314", "parenthetical": "quoting Gray v. Jenkins, 151 N.C. 80, 80, 65 S.E. 644, 645 (1909)" } ], "opinion_index": 0 }, { "cite": "263 N.C. 754", "category": "reporters:state", "reporter": "N.C.", "case_ids": [ 8572921 ], "year": 1965, "pin_cites": [ { "page": "758", "parenthetical": "quoting Gray v. Jenkins, 151 N.C. 80, 80, 65 S.E. 644, 645 (1909)" } ], "opinion_index": 0, "case_paths": [ "/nc/263/0754-01" ] }, { "cite": "511 S.E.2d 309", "category": "reporters:state_regional", "reporter": "S.E.2d", "year": 1999, "pin_cites": [ { "page": "313" } ], "opinion_index": 0 }, { "cite": "132 N.C. App. 341", "category": "reporters:state", "reporter": "N.C. App.", "case_ids": [ 11237793 ], "year": 1999, "pin_cites": [ { "page": "346" } ], "opinion_index": 0, "case_paths": [ "/nc-app/132/0341-01" ] }, { "cite": "554 S.E.2d 840", "category": "reporters:state_regional", "reporter": "S.E.2d", "year": 2001, "pin_cites": [ { "page": "846", "parenthetical": "quoting Hudson-Cole Development Corp. v. Beemer, 132 N.C. App. 341, 346, 511 S.E.2d 309, 313 (1999)" } ], "opinion_index": 0 }, { "cite": "147 N.C. App. 52", "category": "reporters:state", "reporter": "N.C. App.", "case_ids": [ 9377813 ], "year": 2001, "pin_cites": [ { "page": "59", "parenthetical": "quoting Hudson-Cole Development Corp. v. Beemer, 132 N.C. App. 341, 346, 511 S.E.2d 309, 313 (1999)" } ], "opinion_index": 0, "case_paths": [ "/nc-app/147/0052-01" ] }, { "cite": "367 S.E.2d 609", "category": "reporters:state_regional", "reporter": "S.E.2d", "year": 1988, "pin_cites": [ { "page": "612" } ], "opinion_index": 0 }, { "cite": "322 N.C. 200", "category": "reporters:state", "reporter": "N.C.", "case_ids": [ 2516944 ], "year": 1988, "pin_cites": [ { "page": "206" } ], "opinion_index": 0, "case_paths": [ "/nc/322/0200-01" ] }, { "cite": "265 S.E.2d 189", "category": "reporters:state_regional", "reporter": "S.E.2d", "year": 1980, "pin_cites": [ { "page": "190" } ], "opinion_index": 0 }, { "cite": "300 N.C. 186", "category": "reporters:state", "reporter": "N.C.", "case_ids": [ 8560050 ], "year": 1980, "pin_cites": [ { "page": "187" } ], "opinion_index": 0, "case_paths": [ "/nc/300/0186-01" ] }, { "cite": "175 N.C. App. 22", "category": "reporters:state", "reporter": "N.C. App.", "case_ids": [ 8349702 ], "year": 2005, "pin_cites": [ { "page": "26" } ], "opinion_index": 0, "case_paths": [ "/nc-app/175/0022-01" ] }, { "cite": "527 S.E.2d 721", "category": "reporters:state_regional", "reporter": "S.E.2d", "year": 2000, "pin_cites": [ { "page": "724", "parenthetical": "\"On appeal our standard of review for a judgment notwithstanding the verdict is the same as that for a directed verdict; that is, whether the evidence was sufficient to go to the jury.\" (citation omitted)" } ], "opinion_index": 0 }, { "cite": "137 N.C. App. 274", "category": "reporters:state", "reporter": "N.C. App.", "case_ids": [ 11092943 ], "year": 2000, "pin_cites": [ { "page": "277", "parenthetical": "\"On appeal our standard of review for a judgment notwithstanding the verdict is the same as that for a directed verdict; that is, whether the evidence was sufficient to go to the jury.\" (citation omitted)" } ], "opinion_index": 0, "case_paths": [ "/nc-app/137/0274-01" ] }, { "cite": "583 S.E.2d 415", "category": "reporters:state_regional", "reporter": "S.E.2d", "year": 2003, "pin_cites": [ { "page": "417", "parenthetical": "\"The standard of review for a directed verdict is essentially the same as that for summary judgment----whether there is sufficient evidence to sustain a jury verdict in the non-moving party's favor, or to present a question for the jury.\"" } ], "opinion_index": 0 }, { "cite": "159 N.C. App. 440", "category": "reporters:state", "reporter": "N.C. App.", "case_ids": [ 8956666 ], "year": 2003, "pin_cites": [ { "page": "442", "parenthetical": "\"The standard of review for a directed verdict is essentially the same as that for summary judgment----whether there is sufficient evidence to sustain a jury verdict in the non-moving party's favor, or to present a question for the jury.\"" } ], "opinion_index": 0, "case_paths": [ "/nc-app/159/0440-01" ] } ], "analysis": { "cardinality": 952, "char_count": 22342, "ocr_confidence": 0.741, "pagerank": { "raw": 6.305620800671789e-08, "percentile": 0.3879473282033045 }, "sha256": "812e98ef99f0597ba3a990d3e1a3b4a52f8388051c9bd78e5bc4ab12e8246111", "simhash": "1:9e60606ae25b2e4f", "word_count": 3559 }, "last_updated": "2023-07-14T21:51:58.983312+00:00", "provenance": { "date_added": "2019-08-29", "source": "Harvard", "batch": "2018" }, "casebody": { "judges": [ "Judges CALABRIA and STROUD concur." ], "parties": [ "SONGWOOYARN TRADING COMPANY, Ltd. Plaintiff v. SOX ELEVEN, INC. and UNG CHUL AHN, Defendants and Third Party Plaintiffs v. JAE CHEOL SONG, Third Party Defendant" ], "opinions": [ { "text": "HUNTER, JR., Robert N., Judge.\nDefendant Ung Chul Ahn appeals the judgment entered 26 January 2010 against him in the amount of $1,022,041.00 for negligent misrepresentation and unfair or deceptive practices. For the reasons stated below, we affirm.\nI. Factual and Procedural Background\nOn 10 July 2008, SongWooYarn Trading Company, Ltd. (\u201cSongwooyarn\u201d) filed a Complaint against Sox Eleven, Inc. (\u201cSox Eleven\u201d) and Ung Chul Ahn (\u201cAhn\u201d) alleging, in part, breach of contract, negligent misrepresentation, and unfair or deceptive practices. Defendants Ahn and Sox Eleven timely filed an Answer denying these allegations and a counterclaim, along with a Third-Party Complaint against Jae Cheol Song (\u201cSong\u201d) individually. Defendants\u2019 Answer included an affirmative defense that Plaintiff\u2019s Complaint failed to state a claim under which relief can be granted.\nOn 4 November 2009, Defendant Ahn filed his Motion for Summary Judgment, which was denied. The trial began 14 December 2009. At trial, the evidence tended to show the following.\nSongwooyam is a South Korean company with its principal place of business in Seoul, South Korea. Songwooyam sells socks and other spun yams to wholesalers and distributors. Song is President and Chairman of the Board of Directors of Songwooyam and owns more than ninety percent of its stock.\nIn 2002, Song and others formed Sox Eleven as a North Carolina corporation. Song served as President and Chairman of the Board of Directors of Sox Eleven and owned at least sixty percent of the stock of Sox Eleven. Sox Eleven was formed as an intermediary to sell socks to wholesalers in the United States, including a Tennessee company, Crescent Hosiery (\u201cCrescent\u201d).\nSong hired Ahn to manage the daily affairs of Sox Eleven at its office in Charlotte. Ahn acted as translator in communications between Songwooyam and Crescent, as no one at Songwooyam, including Song, could read, write, or speak fluent English.\nSox Eleven arranged for Crescent purchase orders to be forwarded to Songwooyam. Based on these orders, Songwooyam shipped the socks directly to Crescent and billed Sox Eleven. Sox Eleven then billed Crescent and received payment from Crescent. When paid, Sox Eleven forwarded the invoiced amount, minus shipping and taxes, to Songwooyam.\nSongwooyam wired a monthly payment to Sox Eleven for Ahn\u2019s salary and operating expenses, including utilities. The initial payments were $5000 per month, which was later increased to $7000. Song testified that Ahn\u2019s salary was to be taken out of these payments, with the remainder to be used for Sox Eleven expenses.\nSong testified Ahn\u2019s gross salary was $3000 per month initially and was later raised to $3500. Although Sox Eleven had its own bank accounts, which had been jointly established by Ahn and Song, the payments from Songwooyarn were not wired into this account, but instead, at Ahn\u2019s request, were wired into an account held by Ahn\u2019s mother. In addition to his monthly salary, Ahn received commissions from Songwooyarn that were not a part of the monthly payments to Sox Eleven.\nIn Spring 2007, Songwooyarn did not receive payment from Sox Eleven for a shipment of socks sent to Crescent. In May 2007, Song visited the United States to review his business affairs. When Song attempted to inspect Sox Eleven\u2019s bank account, the bank did not allow him access, because Ahn had unilaterally removed Song\u2019s name from the Sox Eleven bank account.\nSubsequently, Song fifed Ahn verbally and confirmed the termination in an email on 4 June 2007. Songwooyarn never received payment in full for the Spring 2007 shipment of socks. In June 2007, Song filed Articles of Dissolution for Sox Eleven.\nAt the close of Plaintiff\u2019s evidence, Defendants moved for directed verdict, which was denied. Ahn testified that the entire payment from Songwooyarn to Sox Eleven was his salary. Ahn also testified that he removed Song\u2019s name from the Sox Eleven bank account after receiving tax advice and that he had explained this to Song. Defendants renewed their motion for directed verdict at the close of all the evidence. These motions were denied.\nThe judge instructed the jury on breach of contract, negligent misrepresentation, and unfair or deceptive practices. The jury found that Sox Eleven breached its contract for the sale and purchase of manufactured socks from Songwooyarn by nonperformance in the amount of $164,318.32. That judgment has not been appealed. The jury found that Ahn engaged in negligent misrepresentation and awarded damages of $1.00.\nIn addition to the jury instructions, the judge also submitted a series of special verdict interrogatories on unfair or deceptive practices to the jury. The questions and the jury\u2019s responses are as follows:\n12. Was the defendant Kevin Ahn an independent contractor doing business with the Plaintiff or was the defendant Kevin Ahn an employee of the Plaintiff? (You will answer this issue no matter what answers have been given to previous issues.)\nAnswer: [Jury wrote:] Employee\n13. \u201cDid the defendant do at least one of the following:\nThe defendant Ahn deceived the plaintiff by representing that payment received from Crescent would be paid by Sox Eleven to the Plaintiff.\nAnswer: [Jury wrote:]\u2014\nThe defendant Ahn deceived the plaintiff about the use of the funds wire transferred from the plaintiff to defendant Ahn.\nAnswer: [Jury wrote:] Yes\n14. \u201cWas the defendant Kevin Ahn\u2019s conduct in commerce or did it affect commerce?\u201d (You will answer this issue only if you have answered either or both of the parts of Issue 13 \u201cYes\u201d in favor of the Plaintiff.)\nAnswer: [Jury wrote:] Yes\n15. \u201cWas the defendant Ahn\u2019s conduct a proximate cause of the injury to the plaintiff\u2019s business?\u201d (You will answer this issue only if you have answered Issue 14 \u201cYes,\u201d in favor of the Plaintiff.)\nAnswer: [Jury wrote:] Yes\n16. \u201cIn what amount has the business of the plaintiff been injured?\u201d (You will answer this issue only if you have answered Issue 15 \u201cYes,\u201d in favor of the Plaintiff.)\nAnswer: [Jury wrote:] $340,680.00\nBased upon these special interrogatories, the trial court trebled the damages found by the jury for unfair or deceptive practices to $1,022,040.00 and ordered Ahn to pay $135,981.25 in attorney\u2019s fees. Defendants moved for judgment notwithstanding the verdict, which was denied.\nDefendant Ahn appeals the denials of his motions for summary judgment, directed verdict, and judgment notwithstanding the verdict on negligent misrepresentation and unfair or deceptive practices. Ahn also appeals the trial court\u2019s conclusion of law that his acts were unfair or deceptive.\nII. Standards of Review\nMotions for directed verdict and judgment notwithstanding the verdict are examined to determine whether the evidence is sufficient for the case to be submitted to the jury. See Nelson v. Novant Health Triad Region, L.L.C., 159 N.C. App. 440, 442, 583 S.E.2d 415, 417 (2003) (\u201cThe standard of review for a directed verdict is essentially the same as that for summary judgment----whether there is sufficient evidence to sustain a jury verdict in the non-moving party\u2019s favor, or to present a question for the jury.\u201d); Whitaker v. Akers, 137 N.C. App. 274, 277, 527 S.E.2d 721, 724 (2000) (\u201cOn appeal our standard of review for a judgment notwithstanding the verdict is the same as that for a directed verdict; that is, whether the evidence was sufficient to go to the jury.\u201d (citation omitted)). We review the trial court\u2019s denial of these motions de novo. Herring v. Food Lion, LLC, 175 N.C. App. 22, 26, 623 S.E.2d 281, 284 (2005).\nWe review the trial court\u2019s conclusion of law on unfair or deceptive practices de novo. Humphries v. City of Jacksonville, 300 N.C. 186, 187, 265 S.E.2d 189, 190 (1980).\nIII. Argument\nA. Negligent Misrepresentation\nDefendant contends Plaintiff\u2019s claim for negligent misrepresentation lacks both an allegation in the Complaint and evidence at trial of essential facts. First, he contends that the Complaint lacks allegations that Plaintiff was denied the opportunity to investigate Aim\u2019s misrepresentation or that such misrepresentation could not have been discovered by reasonable diligence. Further, Defendant argues Plaintiff lacked evidentiary support to meet its burden of showing reasonable reliance at trial.\n\u201cThe tort of negligent misrepresentation occurs when a party [1] justifiably relies [2] to his detriment [3] on information prepared without reasonable care [4] by one who owed the relying party a duty of care.\u201d Raritan River Steel Co. v. Cherry, Bekaert & Holland, 322 N.C. 200, 206, 367 S.E.2d 609, 612 (1988). If the plaintiff \u201c \u2018could have discovered the truth upon inquiry, the complaint must allege that he was denied the opportunity to investigate or that he could not have learned the true facts by exercise of reasonable diligence.\u2019 \u201d Oberlin Capital, L.P. v. Slavin, 147 N.C. App. 52, 59, 554 S.E.2d 840, 846 (2001) (quoting Hudson-Cole Development Corp. v. Beemer, 132 N.C. App. 341, 346, 511 S.E.2d 309, 313 (1999)).\nHere, the evidence supported either an employer-employee relationship (which the jury found) or an agency relationship. In either event, the relationship is a fiduciary relationship where special trust is placed in one. Even absent such a relationship, \u201c \u2018[t]he law does not require a prudent man to deal with everyone as a rascal.\u2019 \u201d Johnson v. Owens, 263 N.C. 754, 758, 140 S.E.2d 311, 314 (1965) (quoting Gray v. Jenkins, 151 N.C. 80, 80, 65 S.E. 644, 645 (1909)). A plaintiff is not barred from recovery because he had a lesser opportunity to investigate representations made by someone with superior knowledge. See Phelps-Dickson Builders, L.L.C. v. Amerimann Partners, 172 N.C. App. 427, 438, 617 S.E.2d 664, 671 (2005).\nThe Complaint alleges, \u201cBecause the officers of SongWooYam were not fluent in English, SongWooYam reposed special tmst in Ahn and relied on his communications on their behalf with the Third Party.\u201d Songwooyarn could not discover a misrepresentation, as the only person Songwooyarn could communicate with who had the information needed was also the party making the misrepresentation. Following the general rule that \u201cthe complaint is to be liberally construed,\u201d we find the Complaint sufficiently alleged justifiable reliance. Meyer v. Walls, 347 N.C. 97, 111-12, 489 S.E.2d 880, 888 (1997) (\u201c[T]he trial court should not dismiss the complaint unless it appears beyond doubt that the plaintiff could prove no set of facts in support of his claim which would entitle him to relief.\u201d (citations and internal quotation marks omitted)).\nThe question of whether reliance was justifiable is a jury question, \u201c \u2018unless the facts are so clear as to permit only one conclusion.\u2019 \u201d Marcus Bros. Textiles, Inc. v. Price Waterhouse, LLP, 350 N.C. 214, 225, 513 S.E.2d 320, 327 (1999) (quoting Restatement (Second) of Torts \u00a7 552 cmt. e).\nSongwooyarn did not have the opportunity to investigate Ahn\u2019s representations until Song traveled to N.C., and when Song discovered that he did not have access to the bank account, he fired Ahn. When Song became suspicious of Ahn\u2019s activities, he did not know who to ask for more information. Song attempted to access the Sox Eleven bank account, but could not, since Ahn had removed his name from the account. Ahn now claims he would have produced the books and records for Sox Eleven if Songwooyarn had requested them. This claim is disingenuous in light of his actions. See Kindred of N. Carolina, Inc. v. Bond, 160 N.C. App. 90, 99, 584 S.E.2d 846, 852 (2003). Viewing the evidence in the light most favorable to Plaintiff, we find factual support for the jury to infer that Songwooyarn justifiably relied on Defendant Ahn\u2019s misrepresentations.\nB. Unfair and Deceptive Practices\n1. \u201cIn or Affecting Commerce\u201d\nDefendant Ahn argues that his activities were not \u201cin or affecting commerce,\u201d and as such were not unfair or deceptive practices under the statute.\nWhether an act is an unfair or deceptive practice is a question of law for the court. Gray v. N. Carolina Ins. Underwriting Ass\u2019n, 352 N.C. 61, 68, 529 S.E.2d 676, 681 (2000). The jury finds the facts of the case, and the trial court, based on those findings, determines as a matter of law whether there were unfair or deceptive practices in or affecting commerce. Id. We review de novo the trial court\u2019s conclusion of law that Defendant Ahn engaged in unfair or deceptive practices in or affecting commerce.\nSection 75-1.1 of our General Statutes prohibits \u201cunfair or deceptive acts or practices in or affecting commerce.\u201d N.C. Gen. Stat. \u00a7 75-1.1(a) (2009). \u201cCommerce\u201d is defined as including \u201call business activities, however denominated, but does not include professional services rendered by a member of a learned profession.\u201d N.C. Gen. Stat. \u00a7 75-1.1(b).\nOur Supreme Court has found unfair or deceptive acts even where an employer-employee relationship exists if the activities of the defendant are in or affecting commerce. See Sara Lee Corp. v. Carter, 351 N.C. 27, 519 S.E.2d 308 (1999). In Sara Lee Corp., our Supreme Court found that the defendant-employee committed an unfair or deceptive act against the plaintiff-employer when he engaged in self-dealing by having the plaintiff purchase goods at a higher price from companies in which the defendant had an interest. Id. at 34, 519 S.E.2d at 312. In Dalton v. Camp, 353 N.C. 647, 656, 548 S.E.2d 704, 710-11 (2001), our Supreme Court clarified that Sara Lee Corp. allowed for recovery where the employee\u2019s actions \u201c(1) involved egregious activities outside the scope of his assigned employment duties, and (2) otherwise qualified as unfair or deceptive practices that were in or affecting commerce.\u201d\nWe agree with Songwooyarn that in the present case, as in Sara Lee, Defendant Ahn engaged in self-dealing, and his status as an employee of Songwooyarn does not bar a claim against him for unfair or deceptive acts or practices. Although Songwooyarn and Sox Eleven had the same majority shareholder, they were distinct corporate entities. Songwooyarn is a Korean company located in South Korea. Sox Eleven was a North Carolina corporation. Sox Eleven was not organized as a subsidiary of Songwooyarn. Defendant Ahn received money from Songwooyarn that was to be used not only for his salary, but for the operating expenses of Sox Eleven. By misappropriating those funds, Defendant Ahn interrupted the commercial relationship between Songwooyarn and Sox Eleven. Because there are multiple companies, including a North Carolina corporation, involved, we conclude that Ahn\u2019s actions were \u201cin or affecting commerce\u201d and constituted unfair or deceptive acts or practices.\n2. Egregious Activities Outside the Scope of Employment\nDefendant Ahn next argues that the trial court erred by not submitting to the jury the issue of whether Defendant Ahn\u2019s activities were egregious activities outside the scope of his employment. The trial court instructed the jury to determine whether Defendant Ahn was an employee of Songwooyarn, and then the judge determined whether Ahn\u2019s acts were egregious and outside the scope of employment. Defendant may not raise this issue on appeal, as any error would be an invited error.\nDefendant argued at trial that whether Defendant Ahn\u2019s actions were outside the scope of his employment was a question of law for the court. The trial judge stated:\nWell, for me a question is is it a matter of law for the Court to determine as to whether or not the employee\u2019s activities were outside the scope of its assigned employment duties or is that for the jury to determine. ... So in order to decide whether or not this one meets the Sara Lee test is that a matter of law for the Court or is that a matter for the jury?\nIn response to this question, Defendant answered, \u201cI would argue it\u2019s a matter of law for the Court.\u201d Plaintiff argued that it was an issue for the jury, and Defendant again argued that it was a matter of law for the court. Although the parties jointly offered a special interrogatory which would have submitted this issue to the jury, when that interrogatory was turned down by the trial court, Defendant said, \u201cThat sounds a lot better to me.\u201d\n\u201cA party may not complain of action which he induced.\u201d Frugard v. Pritchard, 338 N.C. 508, 512, 450 S.E.2d 744, 746 (1994). Defendant repeatedly argued at trial for the result which he now assigns as error.\nC. Standing \u2014 Business Transaction and Choice of Law\nDefendant Ahn also argues that Songwooyam did not have standing because (1) it was not registered to transact business in North Carolina and (2) there was no personal jurisdiction under section 17-5.4 of our General Statutes. We disagree.\nSection 55-15-02 prohibits any foreign corporation transacting business in North Carolina from filing a lawsuit unless that foreign corporation has obtained a certificate of authority prior to trial. N.C. Gen. Stat. \u00a7 55-15-02(a) (2009). Defendant Ahn asserts that this provision precludes Songwooyarn\u2019s claims, as Songwooyarn did not have a certificate of authority.\nSection 55-15-01(b) provides a list of activities that are not considered \u201ctransacting business,\u201d including \u201c[s]oliciting or procuring orders, whether by mail or through employees or agents or otherwise, where such orders require acceptance without this State before becoming binding contracts\u201d and \u201c[transacting business in interstate commerce.\u201d N.C. Gen. Stat. \u00a7 55-15-01(b)(5)&(8) (2009). Although Songwooyarn contracted with Sox Eleven, a North Carolina corporation, all of its contracts were dependent on acceptance \u201cwithout this State\u201d by Crescent in Tennessee. Songwooyam was conducting business in interstate commerce and thus did not need a certificate of authority in North Carolina.\nDefendant Ahn also argues there was no personal jurisdiction because section 1-75.4(4) does not apply. We do not address this issue, as personal jurisdiction exists over Defendant Ahn because he was a resident of Mecklenburg County. See N.C. Gen. Stat. \u00a7 1-75.4(1) (2009) (granting personal jurisdiction \u201c[i]n any action, whether the claim arises within or without this State, in which a claim is asserted against a party who when service of process is made upon such party . . . [i]s a natural person domiciled within this State\u201d). There is personal jurisdiction over Ahn, a resident of this State.\nIV. Conclusion\nWe find no error in the trial court\u2019s rulings on negligent misrepresentation and unfair or deceptive practices, and conclude Defendant invited any alleged error regarding whether the jury should have decided if Defendant\u2019s actions were egregious and outside the scope of his employment.\nAffirmed.\nJudges CALABRIA and STROUD concur.\n. The other allegations of the Complaint were either not submitted to the jury or not found by the jury and are not at issue in this appeal.\n. With Defendant Ahn\u2019s consent, the Third-Party Complaint against Song was dismissed. Defendant Ahn\u2019s counterclaim against Songwooyam was submitted to the jury, but not found by the jury. Neither of these is at issue in this appeal.\n. We do not address Defendant Ahn\u2019s argument as to the trial court\u2019s denial of Defendants\u2019 Motion for Summary Judgment, as \u201c [i]mproper denial of a motion for summary judgment is not reversible error when the case has proceeded to trial and has been determined on the merits by the trier of the facts, either judge or jury.\u201d Harris v. Walden, 314 N.C. 284, 286, 333 S.E.2d 254, 256 (1985).\n. While the issue of whether the defendant\u2019s acts were in or affecting commerce, a question of law, was submitted to the jury in this case, this was not inappropriate. Mapp v. Toyota World, Inc., 81 N.C. App. 421, 425, 344 S.E.2d 297, 300 (1986) (\u201cThe only such \u2018issue\u2019 answered by the jury was whether defendant\u2019s misrepresentations to plaintiff were conduct in commerce or affecting commerce, which was appropriate. The jury\u2019s answer to this issue in plaintiff\u2019s favor was unquestionably supported by the evidence.\u201d).", "type": "majority", "author": "HUNTER, JR., Robert N., Judge." } ], "attorneys": [ "Rayburn Copper & Durham, PA, by Ross R. Fulton, Daniel J. Finegan, and Nader S. Raja, for Plaintiff-appellee.", "Baucom Claytor Benton Morgan & Wood, PA, by M. Heath Gilbert, Jr., for Defendant-appellant." ], "corrections": "", "head_matter": "SONGWOOYARN TRADING COMPANY, Ltd. Plaintiff v. SOX ELEVEN, INC. and UNG CHUL AHN, Defendants and Third Party Plaintiffs v. JAE CHEOL SONG, Third Party Defendant\nNo. COA10-939\n(Filed 21 June 2011)\n1. Fraud\u2014 misrepresentation \u2014 justifiable reliance \u2014 sufficient allegation in complaint \u2014 sufficient factual support \u2014 motions for directed verdict and judgment notwithstanding verdict \u2014properly denied\nThe trial court did not err in a negligent misrepresentation case by denying defendant\u2019s motions for directed verdict and judgment notwithstanding the verdict. The complaint sufficiently alleged justifiable reliance and there was factual support for the jury to infer that plaintiff justifiably relied on defendant\u2019s misrepresentations.\n2. Unfair Trade Practices\u2014 in or affecting commerce \u2014 multiple companies \u2014 motions for directed verdict \u2014 judgment notwithstanding verdict \u2014 properly denied\nThe trial court did not err in an unfair and deceptive trade practices case by denying defendant\u2019s motions for directed verdict and judgment notwithstanding the verdict. Because there were multiple companies involved, including a North Carolina coiporation, defendant\u2019s actions were \u201cin or affecting commerce.\u201d\n3. Appeal and Error\u2014 issue not addressed \u2014 invited error\nDefendant\u2019s argument that the trial court erred by not submitting to the juiy the issue of whether defendants\u2019 activities were egregious activities outside the scope of his employment was not addressed on appeal as any error was invited by defendant.\n4. Jurisdiction\u2014 standing \u2014 negligent misrepresentation\u2014 unfair trade practices \u2014 no certificate of authority needed \u2014personal jurisdiction over defendant existed\nPlaintiff had standing to file a negligent misrepresentation and unfair trade practices lawsuit against defendant. Plaintiff was conducting business in interstate commerce and thus did not need a certificate of authority in North Carolina since personal jurisdiction existed over defendant because he was a resident of Mecklenburg County.\nAppeal by Ung Chul Ahn from judgment entered 26 January 2010 by Judge Beverly T. Beal in Mecklenburg County Superior Court. Heard in the Court of Appeals 26 January 2011.\nRayburn Copper & Durham, PA, by Ross R. Fulton, Daniel J. Finegan, and Nader S. Raja, for Plaintiff-appellee.\nBaucom Claytor Benton Morgan & Wood, PA, by M. Heath Gilbert, Jr., for Defendant-appellant." }, "file_name": "0049-01", "first_page_order": 59, "last_page_order": 69 }