Question
Johnnys friend Arnold wishes to purchase a restaurant. One Friday evening he finds an Indian restaurant called Puluub for sale, which is located on Kerouac
Johnny’s friend Arnold wishes to purchase a restaurant. One Friday evening he finds an Indian restaurant called Puluub for sale, which is located on Kerouac Avenue around the corner from Johnny’s restaurant The Lame Duck. The restaurant is full of customers. The following Monday Arnold speaks to Johnny about his plans. Arnold explains that he is very keen to buy the business but that he has never owned a restaurant or even worked in the industry before, and he would appreciate Johnny’s advice and guidance. Johnny assures Arnold that Puluub appears to be a very successful restaurant and that he is ‘almost guaranteed’ to make a profit in the first twelve months. Arnold immediately decides to purchase the restaurant with his brother Cameron. One year later they are on the verge of bankruptcy; the restaurant was not as popular or as profitable as they expected, and turnover has declined even further since they took over the business. Has Johnny committed the tort of negligent misstatement? In your answer focus on whether or not Johnny owed a duty of care to (1) Arnold and (2) Cameron
Step by Step Solution
3.45 Rating (152 Votes )
There are 3 Steps involved in it
Step: 1
Johnny has not committed the tort of negligent misstatement because he ...Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started