Answer the questions Case Study Example | Topics and Well Written Essays - 250 words - 1

Answer the questions - Case Study Example Failure to pay taxes by Bill is also essential to this lawsuit. Overstatement of net annual profits by Sam is also fraudulent. Failure to disclose true and fair view information of the restaurant’s net profits creates a fine for Sam. Despite, the accountant disclosing the information on overstatement Bill still goes ahead to complete the sale indicating intention of hiding the improprieties by Sam (Hall, 2012). Sam can claim to have disclosed all information on the annual net profit of the restaurant through the brochure. Sam goes ahead to disclose the unreported cash transactions to Bill. Therefore, Bill is well aware of the nature of business and unpaid taxes. Bill goes ahead to accept and completes the sale. Making a net profit each year of a little less than $25,000 cannot be a basis to justify a breach of contract (Hall, 2012) Sam is liable for a fine for failure to report all transactions to IFS, which is fraudulent. Sam claims on breach of contract is invalid as he is well aware of the state of the restaurant dealings and attempts to cover the fraud (Hall,