BLAW3337
Identify and discuss the relevant legal issues and discuss them fully. Specifically state what you think the outcome will be and why. In Questions #1, you will want to consider each element of the cause of action as well as defenses. Your response should range between 250 and 350 words.
William B. Travis owned a hotel in Falfurrias on U.S. 281 which he sold to Stephen F. Austin. During the course of negotiations, Travis represented that the hotel netted around $ 50,000 during the prior calendar year and that he expected it to net $ 75,000 the following year. The hotel books, which Travis made available to Austin before the sale but were never checked, showed that the profit from the prior year was actually closer to $ 30,000. Also, Travis fails to reveal that after completion near the end of the prior year of a local highway reconstruction project which housed many workers in the hotel, occupancy fell off dramatically. The first yearof Austin’s ownership nets a profit of less than $ 10,000. Around that time, Austin becomesaware of the prior lower profits and the effects of the completion of the highway project. He feels he has been defrauded. Austin wants Travis to return the purchase price and take back the hotel. Discuss whether Travis is required to give the funds back.
At the time of Sale of business, it is necessary to disclose all the material facts related to the business by the Seller to Buyer. Further, it is the responsibility of the Buyer to look into all the books of accounts of the business and enquire about the business from its related business suppliers and vendors to determine the profitability of the business. Also, an Expert can be hired to conduct the Feasability Study of the business being acquired by the Buyer.
In the given case, at the time of Sale of Hotel by William B. Travis to Stephen F. Austin, it was the repsonisbility on the part of Travis to disclose all the material facts to Austin i.e. about the local highway construction project. Also, it was the repsonsibilty on part on Austin to check the books of Hotel provided to him by Travis.
Since in the given case, there is neglect of duties on part of both Travis and Austin, it is advised to take the matter to Court so that justice should be given to both the parties considering facts of the case.
BLAW3337 Identify and discuss the relevant legal issues and discuss them fully. Specifically state what you...
Please read the article and answer about questions. You and the Law Business and law are inseparable. For B-Money, the two predictably merged when he was negotiat- ing a deal for his tracks. At other times, the merger is unpredictable, like when your business faces an unexpected auto accident, product recall, or government regulation change. In either type of situation, when business owners know the law, they can better protect themselves and sometimes even avoid the problems completely. This chapter...