Ralph and Ann Engaged Sue,a Realtor,to Sell Their Variety Store

Essay

Ralph and Ann engaged Sue,a realtor,to sell their variety store.Sue represented to buyer Mike that "this was a typical general store," selling gas,oil,hardware,beer,and groceries.She reported that the store had an annual gross income of over $1 million.Sue failed to inform Mike that one-third of the store's profit was attributable to an accompanying lawn and garden equipment distributorship that Ralph and Ann were not including in the sale.When Mike visited the business,Sue directed him away from the garage area where the lawn and garden equipment was stored.Throughout all of these negotiations,Ralph and Ann were unaware of Sue's misrepresentations.After purchasing the store,Mike learned of the importance of the equipment sales from Ralph and Ann.Are Ralph and Ann liable for Sue's misrepresentation? If yes,what can they do to avoid liability?