Question
Finn engaged Molly, a business broker, to sell their country general store. Molly represented to buyer Wike that Finn's business was a typical general store
Finn engaged Molly, a business broker, to sell their country general store. Molly represented to buyer Wike that Finn's business was a typical general
store" selling gas, oil, hardware, dry goods, beer and groceries. Molly told Mike that Finn's business had an annual gross income ot over 515 million.
But Molly did not tell Mike that one-third of the general store's profit was attributable to an accompanying lawn and garden equipment distrbutanstio
that was not included in the sale of the general store. When Mike visited the business, Molly directed him away from the garage area where the baum
and garden equipment was stored. Throughout the negotiations, Finn was unaware of Molly's misrepresentations as to the profits of the general store.
After purchasing the general store business from Finn, Mike learned of the importance of the equipment sales to the business and demanded Finn
either return one third of the amount Mike paid for the business or Mike would sue to rescind the sales contract.
Is Finn liable for Mollys misrepresentation?
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