James Packer, the owner/sole director of a Gold coast fast-food chain Foodie Pty Ltd, sold the business for $3 million to two sisters, Jena and Gina on the basis of false pre-contractual statements and false representations about its cash flow and profitability. The sale contract contained a whole of agreement clause: that the written contract was the entire agreement between the parties. Assume that a fair price would have been $2 million and that the sisters incurred financing and related costs of $100,000 to undertake the purchase. They also gave up full time jobs at salaries of $150,000 per year as accountants to run the business. The business lost $100,000 in the first year of operations before they were able to re-sell it for $1.5 million.

What legal rights and remedies (if any) would the sisters have against Foodie and its director James Packer under the Competition and Consumer Act 2010 (Cth)?

Answer rating: 100% (QA)

The two sisters have legal rights under the competition and consumer act 2010 They ... View the full answer