Donna Brown Owned a Flower Shop,which She Was Anxious to Sell.Charles

question 52

Essay

Donna Brown owned a flower shop,which she was anxious to sell.Charles Blue visited her shop and discussed a possible purchase.During those discussions,Donna stated that she was sure 2013 sales would exceed $400 000 and that sales for 2012 were more than $360 000.Charles was impressed with those figures and offered to purchase the flower shop for $110 000 cash.The sale was completed one week later (November 24,2012)and was documented with a brief written agreement that did not include anything about past sales.In April 2013,Charles had the 2012 financial statement for the flower shop prepared and discovered that actual sales for 1997 were $320 000.In addition,Charles knew that 2013 sales were 5 percent below sales for the same period a year earlier.Charles confronted Donna with those figures and Donna was evasive and refused to accept any responsibility,saying only that the written agreement contained no mention of sales figures.Charles asks you the following questions:
a.Do I have a right to sue Donna,and if so,what is the legal basis for my action? What must I prove and what are my chances of success?
b.What remedies could I seek,and do I have different remedies from which I can choose?

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Definitions:

Municipal Bond

A debt security issued by municipalities to finance public projects, often tax-exempt for investors.

Marginal Tax Bracket

The tax rate that applies to the last dollar of the taxpayer's income, indicating the percentage of tax applied to their highest level of income.

DAX

The Deutsche Aktienindex, a stock market index consisting of the 40 major German companies trading on the Frankfurt Stock Exchange.