12.2 Hypothetical Question with Sample Answer. Grano owns a forty-room motel on Highway 100. Tanner is interested
Question:
12.2 Hypothetical Question with Sample Answer. Grano owns a forty-room motel on Highway 100. Tanner is interested in purchasing the motel. During the course of negotiations, Grano tells Tanner that the motel netted $30,000 during the previous year and that it will net at least $45,000 the next year. The motel books, which Grano turns over to Tanner before the purchase, clearly show that Grano’s motel netted only $15,000 the previous year. Also, Grano fails to tell Tanner that a bypass to Highway 100 is being planned that will redirect most traffic away from the motel. Tanner purchases the motel. During the first year under Tanner’s operation, the motel nets only $18,000. At this time, Tanner learns of the previous low profitability of the motel and the planned bypass. Tanner wants the purchase price back from Grano. Discuss fully Tanner’s probable success in getting the funds returned.
Step by Step Answer:
Business Law Today Comprehensive
ISBN: 9780324595741
8th Edition
Authors: Roger LeRoy Miller, Gaylord A Jentz