Legal Question in Business Law in Louisiana

Buying service business
I recently bought a business through a business broker, who represented the business as having an established cash flow per month, and requiring a basic knowledge of electronics. I have a basic electronic background. After closing I found out that since this business is one that is regulated by the FAA, I need specilaized training and proficiency testing by a FAA inspector, before I can start servicing the client list that came with the business. In the terms of the contract with the seller we agreed to put 10,000.00 dollars of a 20,000.00 dollar downpayment in escrow until I have been approved by the FAA. Since then I have convinced the seller to release the escrow amount since to date I have only seen 700.00 dollars of 3100.00 dollar cash flow. The other 10,000.00 dollars that I gave the seller went to the broker for there fee. Can I go after the broker? I feel the business was misrepresented. The seller is 73 years old and is operating in a diminshed capacity. He's memory is terrible and he admits this, so a lot of the training that he is suppose to provide is lacking.

Asked on 11/30/03, 10:31 am

Nick Pizzolatto, Jr. Pizzolatto Law Office

0 users found helpful

0 attorneys agreed

Re: Buying service business

This is one where you need to seek an attorney specializing in business acquisition law.

Answered on 12/02/03, 8:24 am

Keywords

Match Any Match All

Country

State

Area of Law