Business law Essay Example | Topics and Well Written Essays - 250 words - 6

Business law - Essay Example gal act and quiet unethical as it manipulates the inventory so as to attract potential investors by adding the credit worthiness as well as increasing chances of being advanced a facility by a financial institution. It could also imply that increased inventory statements will equally reduce the cost of goods thus reduce the expense and subsequent reflection in high gross profit. Furthermore, overstatement of inventory statements leads to business overpaying tax since it increases the pre-tax net income. Basing on this, ABC Investments can therefore seek legal action for damages which can make them recover whatever they have lost which in this case amounts to $500,000 and any other damages. However, Zulu Computer Corporation can argue it as an innocent misrepresentation that leads to a rescission remedy which means that they assume the original status as though they had not signed the contract and will depend on the court whether the damages will be awarded depending on the nature of innocent misrepresentation and losses suffered. ABC Investments can use copies of the financial statements to file a petition of which individual responsibility or company responsibility will