Answer to Question #47462 in Australian Law for lulu

Question

Mr Manfredi recently purchased a vegetarian café from HappyHippie Pty Ltd on the faith of representations made to him by HappyHippie director, Elvis Eggplant regarding the past and future profitability of the café.

The historical figures, in the form of a historical account, presented to Mr Manfredi were inflated by 60%, and amounted to nothing more than a series of numbers “made up” by Elvis Eggplant. These were designed to induce Mr Manfredi to purchase the café.

When setting up his new café, Mr Manfredi discovered some old receipts and cash register tapes. He also discovered some old tax documents. On inspection, Mr Manfredi discovers that the figures put to him by Mr Eggplant were false.

Mr Manfredi has come to you for advice which you must base on legislation and/or common law