campbell_v_mcclure[1] - If I were the buyer I would still...

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February 10, 2010 Campbell v. McClure 1. In my opinion McClure is liable for fraud because he said that he made a profit of $142,000 in 1981 but then in trial he said that when he prepared the brochure he did not believe that he had a net income of $142,000. He knew his words were false so he is liable for fraud. 2. If Campbell is successful in this lawsuit the court cannot order McClure to jail. This is a civil case and not a criminal case so whoever loses does not go to jail. He has violated his duty but has not committed a crime. 3.
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Unformatted text preview: If I were the buyer I would still purchase the business after the seller told me that he substantially under-reported income to the IRS to reduce his taxable income. I would make him show or tell me what his net income actually was to make sure that I could possibly still be profitable when I bought the business. Him understating his net income so his taxes were lower has nothing to do with me purchasing the business. If the IRS found out this then it is McClure’s problem and not mine since I had nothing to do with it....
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