Fischer v. Division West Chinchilla Ranch

Facts

In late 1966 and early 1967, seven plaintiffs, none of whom were sophisticated businessmen or highly educated, responded to defendant’s television advertisements promoting chinchilla ranching as an easy home-based business requiring only thirty minutes daily and capable of generating five-figure incomes. Each plaintiff paid or obligated themselves to pay $2,150 or more for chinchillas, cages, and supplies. Defendant’s salesmen represented that chinchilla ranching required no special skills, that the animals were disease-free, that pelts would sell for twenty to forty dollars each, that females would produce multiple litters yearly, and that defendant would provide expert consultation and purchase pelts. The salesmen told each plaintiff their existing basement or room would be ideal without modifications. After approximately three years, none of the plaintiffs had sold any pelts or earned any profit. The chinchillas proved to be of inferior quality, many were “chewers” that damaged their own fur, and proper environmental controls including temperature, humidity, and noise management were necessary but not disclosed. Defendant’s own expert testified that chinchilla ranching was an art requiring carefully controlled environments, contradicting the representations made to plaintiffs.