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Brad had recently inherited a significant amount of money and was seeking an investment opportunity when he saw the local mini-mart advertised for sale in

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Brad had recently inherited a significant amount of money and was seeking an investment opportunity when he saw the local mini-mart advertised for sale in the window of a real estate agent. He made an appointment with the agent and asked for further information on the business. He indicated that he was interested in investing locally and that this looked like the perfect opportunity. The agent, Maria, told him that she had not personally seen the accounts but that she was often in the shop and there appeared to be a steady ow of customers, she recommended that Brad make an appoinnnent to meet with the current owners and review their accounts. Brad contacted the owners who referred him to their accountant. Brad met with the accountant and was reassured by the positive report he was given. Brad was told (correctly) that the shop had experienced a steady increase in profit over the previous 5 years and the accountant further stated that he could see no reason why this would change in the near future. However he also cautioned Brad that business was a 'fickle thing', warned that he was 'not prepared to forecast futu re growth' and suggested that Brad seek further, independent advice before proceeding with the purchase. But took note of the accountant's caution but he was so encouraged by the information that the accountant had provided to him that decided to purchase the mini-mart anyway. All went well for a year until Woolworths opened directly across the road and business rapidly dropped off. Brad is now facing financial ruin and can only hope to sell the mini-mart for land value. He has recently discovered that the Council had approved the Woolworths development shortly prior to his purchase of the business and that the previous owners had heard nunours of this, which is why they had decided to sell. He would definitely not have gone ahead with his purchase of the business if he had been made aware that Woolworths would be opening a major new supermarket across the road. He suspects that, at the time he spoke to them, both the accountant and the agent were also probably aware that the Woolworths development was, or was very likely to be, going ahead. Advise Brad as to whether he could successfuy make a claim for compensation for his losses from the agent, the vendors or the accountant either under s. 13 of the Australian Consumer Law or at common law for negligent misstatement. Give full reasons for your

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