  The light axigluon model of Tavares and Schmaltz is a viable candidate to
explain the Tevatron t-tbar forward-backward asymmetry. In this paper we
present the forward-backward asymmetries for b-bbar and c-cbar systems
predicted by the light axigluon. Furthermore, we modify this model to include
flavor changing couplings of axigluons with the SM quarks. We constrain these
couplings from the available neutral meson mixing data, and investigate their
effects on the rare decay B^0_s -> mu^+ mu^-, CP violating D -> h^+ h^- and
isospin violating B -> K^(*) mu^+ mu^- decays. We show that a light axigluon
can contribute to the observed CP violation in D -> h^+ h^- decays.
