Business Law and the Regulation of Business 11th Edition by Richard Mann, Barry Roberts

Exercise 28

Division West Chinchilla Ranch advertised on television that a five-figure income could be earned by raising chinchillas with an investment of only $3.75 per animal per year and only thirty minutes of maintenance per day. The minimum investment was $2,150 for one male and six female chinchillas. Division West represented to the plaintiffs that chinchilla ranching would be easy and that no experience was required to make ranching profitable. The plaintiffs, who had no experience raising chinchillas, each invested $2,150 or more to purchase Division's chinchillas and supplies. After three years without earning a profit, the plaintiffs sued Division West for fraud. Do these facts sustain an action for fraud in the inducement?