John McMordie (McMordie) was an officer and director of Fairline Feeding Corporation, appellant (Fairline). Edward Tomei, respondent (Tomei) was a personal friend of McMordie and had previously invested in the commodity markets through McMordie's office. McMordie asked Tomei if he wanted to invest in the cattle business, and Tomei responded that he didn't know anything about it but that he had $10,000 he could...
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