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Paul is the owner of the Mexicana Restaurant overlooking a lake. Paul advertises the restaurant for sale at $1.5 million. Joey comes to inspect it

Paul is the owner of the Mexicana Restaurant overlooking a lake. Paul advertises the restaurant for sale at $1.5 million.

Joey comes to inspect it and tells Paul: "My budget is not more than $500,000".

Paul replies: "This is no ordinary restaurant. It is a diamond mine! Your business can achieve over $650,000 a month and here are the books of account showing such profits. Our customers include the President. You can hold BBQ parties alongside the lake."

Such statements convinced Joey to buy the restaurant at the asking price of $1.5 million, without checking the books of account given by Paul.

During the first few weeks of running the restaurant, a group of 3 customers dining at the restaurant suffered food poisoning. One of them was so seriously ill and was hospitalized from the food poisoning but recovered after two weeks. It was discovered that it

was due to the negligence of the restaurant's chef who did not freeze the raw meats at the appropriate temperature of the kitchen's refrigerator. The 3 customers now wish to claim from Joey damages for pain and suffering, loss of salary, medical and hospital expenses.

There is a signage pasted all over the car park of the restaurant which states: "Car Park at Your Own Risk". Sometime in the second month of opening the restaurant, Alex drove into

the restaurant's car park to have a meal at the restaurant. After closing his car's door, and as Alex walked towards the restaurant he fell down in the car park and was injured. His new leather briefcase was scratched when he fell down. Alex wants compensation for his personal injury and for his damaged briefcase.

After operating the restaurant business for a few weeks, Joey discovered the President has previously visited only once and that almost all the restaurant business is done during the night and regular customers are not interested in holding parties alongside the lake as there are too many mosquitoes. Joey never managed to obtain a monthly turnover of more than $150,000 a month. Joey wants to sue Paul.

Advise the 3 customers and Alex on the restaurant's liability. Also advise Joey on his legal position with Paul.

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