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Consumer Law Keyed to Pridgen, 5th Ed.
Ly v. Nystrom
Citation:
615 N.W.2d 302 (2000)Facts
In 1996, Hoang Minh Ly, a Vietnamese immigrant with limited English and only a second-grade education, was approached by Kim Nystrom about purchasing her Shakopee restaurant called Chin Yung. Nystrom represented that the restaurant generated monthly gross revenues of $25,000 to $30,000 and monthly profits of $6,000 to $7,000. She assured Ly they were friends and she would not deceive him, discouraging him from consulting a lawyer or reviewing financial records. Ly purchased the restaurant for $90,000 with a $20,000 down payment. The restaurant never made a profit, generating only $6,000 to $7,000 monthly in total sales. The inventory was largely unusable, and the physical facilities had numerous defects including plumbing, electrical, and structural problems. After accumulating $45,000 in credit card debt and borrowing $30,000 from family, Ly was coerced into canceling the contract in December 1996 when Nystrom threatened legal action and police involvement. Nystrom sold the restaurant to another purchaser the same day.
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