(b)Smith and Son have established and operated successful supermarket. The Smiths are desirous of migrating and wish to sell the business.They were approached by Quality Foods who expressed interest in buying the supermarket.Quality Food asked Smith and Son why the supermarket has been so successful. The Smiths replied that it is because: "There were no other major supermarkets within a 15 miles radius."This business will make you a fortune. I believe the annual level of profit is around $800 million" The senior Smith stated.Quality Food asked their internal auditors to look at the figures.The internal auditor confirms that the supermarket was doing well. Quality Foods asked for a few weeks to think about the offer. Smith and Son discovered that there was two major supermarkets that were about to establish operation in the area. They did not inform Quality Food of this new development. After the final audit of the business, Smith and Son discovered that although the Supermarket was successful, there was a steady decline in profitability over the last five years and the profit was nowhere close to $800 million. Quality Foods purchased the Business and subsequently discover the true level of profit as well as the imminent opening of two rival supermarkets.

Quality Food is seeking your advice on the legal issues in this case. With the use of decided cases advice the parties of the legal principles involved (20 marks)

The IRAC method should be used in the analysis of this case.

I is for Issue: State all the legal issues that must be taken into account in this case.

R is for Rule: State the relevant statutes law and or case law that be applicable in this case

A is for Application: Apply the relevant rules to the facts of the case.

C is for Conclusion: State your own conclusion based on your understanding of the facts of the case. State possible alternatives outcomes that could be arrived at based on possible ambiguity in the facts of the case or in the rules relevant to this case.