Significance-revenues generated by janelle custom tailoring

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Question: Janelle retained Bruno, a realtor, to sell "Janelle's Jersey Shore", her designer boutique located on Main Street in the heart of the St. Charles fashion district. Bruno represented to Andrew, a prospective buyer, that Janelle's was a typical boutique of the type found along Main Street, selling designer clothing and accessories. Bruno told Andrews that Janelle's had an annual gross income of over $700,000. Bruno did not tell Andrew that 25% of Janelle's profits were generated by the custom tailoring performed by Janelle at the boutique, and not the sale of merchandise. Janelle's tailoring business was not part of the sale, and Janelle intended to continue to perform that service from a smaller location on Main Street. When Andrew visited the boutique, Bruno was careful to keep Andrew away from the sewing room used by Janelle for her tailoring and alterations. Throughout the negotiations, Janelle was unaware of Bruno's misrepresentations. After purchasing the boutique, Andrew became aware of the significance of revenues generated by Janelle's custom tailoring, and sued Janelle for fraud over the sale of her boutique. Is Janelle liable for Bruno's misrepresentation? What defenses, if any, does Janelle have to Andrew's claim of fraud?

Reference no: EM131826783

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