Ever since he was a little kid, Bob Wheelie has been in love with pushbikes. He started by using it to ride around his backyard for fun, then he rode it to school, and everywhere else he needed to go. As Bob grew older, he decided he preferred the off road type of bike. He became involved in mountain biking, his favourite track around Canberra was the Mount Stromlo track.
By the time Bob was 15 he had made a name for himself in the riding community. At 17, he participated in an extreme ride in Victoria’s High Country. Bob became so good that he was selected to compete at the World Cup in Lenzerheide, Switzerland.
When Bob finished his Sports Management degree at the XYZ Uni, he worked for a variety of sporting organisations, and in his spare time, he continued to ride his beloved bike.
Following a disagreement with his boss, Bob decided that he’d like to work for himself and started looking around. Not long after his 30th birthday, he saw an add that caught his eye. Mr Spoke, the owner of a bicycle store was retiring and needed to sell his store.
Bob saw this as a perfect opportunity. It would allow him to work for himself doing just what he loved. Not knowing much about running a business, Bob made enquiries with Mr Spoke regarding the sale. Mr Spoke made representations regarding the past and future profitability of the store.
Bob purchased the bicycle store on the basis of the historical figures presented by Mr Spoke in the form of historical accounts. These accounts were not an accurate representation, but were inflated by 55%. The figures were designed to induce Bob Wheelie to purchase the store, so that Mr Spoke could retire and travel overseas.
Bob was very excited about his new venture. He planned to not only sell bikes, but provide bike service, advice and some basic lessons. When Bob started to set up his new shop, he came across some old register tapes, cash receipts and tax documents. On closer inspection, he discovered that they were not as old as they seemed at first, going back the last three years.
Not knowing how to read these documents properly, Bob enlisted the help of a fellow enthusiast who studied accounting at Uni. Between them they discovered that the figures Mr Spoke gave Bob were false. The figures seemed to indicate that the shop was not in a good financial position, and that Bob’s new venture might cost him considerably more than he anticipated in order to make it work.
Understandably, Bob is very upset and comes to you for advice which you must base on common law and or legislation as appropriate. Because Bob is considering taking Mr Spoke to court, your answer must be supported by relevant case law.
Your assignment must be written in the third person, in the form of a legal essay. The maximum length of your essay is 1500 words, +/- 10%. Referencing must be in accordance with the AGLC3, which can be found on the library website.
(This is basically not that hectic case study to do. It will not take more than few hours)
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