Key legal question
Whether the recruiters’ false information is attributable to the school owner as fraud under Art. 28 CO in conjunction with Art. 101 CO.
Extracted holding
Yes. The recruiters acted as auxiliaries with at least tacit consent, so their deliberate misinformation is attributable to the appellant; the students were induced into error and the contracts were vitiated by fraud.
Extracted reasoning
The Federal Supreme Court held that an auxiliary under Art. 101 CO includes any person assisting with the debtor’s consent, even without a formal relationship or subordination. The appellant knew of the Chinese brochures, knew some photographs were manipulated, and knew the recruiters conveyed inaccurate information. Therefore the deception was imputable to him.