Reference no: EM133002922

Peaches Co., Inc. agreed to find a buyer for Rider Industries, Inc., for a commission of 4 percent of the purchase price, which was to be paid by the buyer. Using Peaches' services, an investment group bought Rider for $20 million and changed its name to Romper, Inc. Peaches asked Romper to pay a commission on the sale but Romper refused, arguing that Peaches had acted as a broker in the deal without a license. Peaches has a broker's license in its own state where transactions of this kind do not require a broker's license but does not have a license in Rider's state. Rider knew of Peaches licensing status prior to soliciting Peaches services in the transaction. The applicable statute in Rider's state defines a broker as any person who deals with any aspect of the sale of a business.

Problem 1: If this statute was intended to protect the public, can Peaches collect its commission? Explain in IRAC format.