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Yost V. Rieve Enterprises Case Summary

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Yost v. Rieve Enterprises, Inc. is a case that involves innocent misrepresentation whereby W.F. Yost, owner of the Red Barn Barbeque Restaurant (also called the Red Barn) was sued by Rieve Enterprises, Inc., represented by Richard and Evelyn Ramano and Evelyn’s brother Richard Jason, to rescind the purchase agreement of the restaurant (Cheeseman, 2013). According to Cheeseman (2013), the facts of the case indicate that Rieve Enterprises entered into a contract to purchase the assets and equipment, including a 5 year lease of the Red Barn with an option to buy the land and the building after having visually inspected the restaurant. The facts also state that before Yost sold the Red Barn to Rieve Enterprises, the restaurant was cited for health violations in which he did correct, and Yost promised that “the premises will pass all inspections” to carry out business (Cheeseman,2013). Furthermore, Rieve Enterprises did not check any public records as to any health inspections and they took possession of the restaurant right away…moving right into the goal of producing volume and making a profit. The language of the contract included the following clause that indicated that the, “seller warrants that at the time physical possession is delivered to buyer, all equipment will be …show more content…

Apparently Yost may have thought the fixes were a done deal and entered into the contract believing in his heart he was doing the right thing. The issue is that although Yost had prior knowledge that there were problems with the “electrical wiring, plumbing and sanitation, improper drainage, poor ventilation, and an improperly installed oven” (Court of Appeals of Florida, 1st Dist. 1984) and Rieve Enterprises did not have that knowledge. Rieve Enterprises heavily relied on the purchase and sales

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