Company D advertised on a television that an income might be acquired by maintaining chinchillas with an investment of $3.75 per year. The company D is saying that ranching of chinchilla would be easy and no experience requisite to make ranching beneficial. Accuser who had no experience maintaining chinchillas invested to buy chinchillas. After three years of purchase without acquiring profit accuser sued against company D. To discuss: Whether these truths withstand an action for fraud in inducement.

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Chapter 11, Problem 19CP

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Case summary: Company D advertised on a television that an income might be acquired by maintaining chinchillas with an investment of $3.75 per year. The company D is saying that ranching of chinchilla would be easy and no experience requisite to make ranching beneficial. Accuser who had no experience maintaining chinchillas invested to buy chinchillas. After three years of purchase without acquiring profit accuser sued against company D.

To discuss: Whether these truths withstand an action for fraud in inducement.

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