Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The owner of Paperworx Pty Ltd decides to sell the stationery business. He advertises the business for sale by saying the business has good prospects

image text in transcribed
The owner of Paperworx Pty Ltd decides to sell the stationery business. He advertises the business for sale by saying the business has good prospects and great profit margins. Leo purchases the business in reliance on the advertisement and unaudited financial statements provided by the company. Leo soon realises that the information he relied upon had exaggerated the actual potential of the business. 1. Paperworx Pty Ltd claims that the advertisement was mere sales talk, a puff, and that Leo was advised to check all claims prior to the sale. Given this information, what action could Leo take under the Australian Consumer Law (ACL), and in particular, under sections 18 and 29? (10 marks)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Study Guide With Working Papers, Chapters 1-9 For Heintz/Parrys College Accounting

Authors: James A. Heintz, Robert W. Parry

21st Edition

1285059379, 9781285059372

More Books

Students also viewed these Accounting questions