Please use the IRAC method and answer the case question.

Fraudulent Misrepresentation. Division West Chinchilla Ranch made numerous TV advertisements that induced listeners to go into the business of raising chinchillas. The advertisements stated that, for a payment of $2,150 or more, Division would send one male and six female chinchillas andfor an additional sumcages, feed, and supplies. Divisions representations were that chinchilla ranching can be done in the basement, [and] spare rooms, . . . with minor modifications and that chinchillas were odorless and practically noiseless and a profitable pastime that can explode into a FIVE FIGURE INCOME. All statements would lead one to believe that no special skill was needed in the raising of chinchillas. Based on these representations, Adolph Fischer and others (the plaintiffs) purchased chinchillas from Division. None of the plaintiffs was a sophisticated businessperson or highly educated. It soon became apparent that greater skill than that advertised was required to raise chinchillas and that certain statements made by Divisions sales representatives as to the value of the pelts were untrue. None of the plaintiffs had financial success with their growing (ranching) of chinchillas over a three-year period. The plaintiffs sought to rescind the contracts to get their money back, claiming fraud on the part of Division. Discuss whether Divisions statements constitute fraud.

Please use IRAC method. What is the Issue, Rule, Application, and Conclusion.