Business law Assignment Help

Business law Assignment Help

Problem One:

Directions: Read the following hypothetical and answer the questions below.

Kramer invented a liquid metal cleaner that he hoped to sell for household and industrial applications. While the product was undergoing a series of tests for safety and effectiveness, Kramer met with executives at Costco to discuss terms of an agreement under which Costco would market the cleaner. During the meeting one executive said, “If everything checks out, it looks like we have a deal.”

Excited about his future prospects, Kramer rushed over to his neighbor’s house and said, “Jerry, Jerry . . . I just got out of a meeting with the brass at Costco. They’re going to pick up my metal cleaner. The only thing I need now is some working capital in order to set up production. This thing is going to be big for sure, Jerry.”

Jerry wrinkled his nose and said incredulously, “Are you talking about that gray muck you’ve been mixing up in your sink? Costco wants it? Are you sure? Has it been tested?”

Kramer responded, “Of course it’s been tested. These Costco people know what they’re doing. Don’t dismiss this, Jerry. You’re very quick to dismiss.”

Jerry was finally convinced when Kramer provided him with the name of his company (Kramerica Enterprises—formed for the sole purpose of marketing the metal cleaner), the pending patent number, and other information necessary for Jerry to research the venture on his own. Jerry never actually did any research, because he was impressed by Kramer’s forthrightness.

Jerry’s investment in Kramerica Enterprises was used to set up production equipment in Kramer’s apartment. Meaning to keep the equipment clean and in good running order, Kramer frequently applied his product to the equipment during the first couple of days of production. On the morning of day three, Jerry discovered Kramer passed out in his living room next to the equipment, which was pitted and corroded beyond use.

It turned out the metal cleaner was both toxic to breath and corrosive to metal. Fortunately for Costco, the information came out in time to break off negotiations and avoid entering into a contract with Kramer. Unfortunately for Jerry, his money is spent and the equipment can’t be sold for anything other than scrap. His investment is a total loss.

Questions for Problem One (7 pts.):

 

1. Define Fraudulent Misrepresentation (list the elements of this rule).
2. What is the issue (who is suing who and why).
3. Apply the facts to each element of the rule: identify the specific facts that prove or disprove whether this is a fraudulent contract.
4. What is your conclusion and why?

 

 Problems Two and Three :

Directions: for each of the two scenarios below:

 

1. Select the best business model for the scenario. Your choices are:
2. Sole Proprietorship
3. Joint Venture
4. Partnership
5. Limited Partnership
6. Limited Liability Company
7. Corporation
8. In making your decision, focus on:
9.    A. startup process: automatic vs. filing requirements

b   B. Financing

1.    C. Ownership/Management {control}
2.  D. Limitations on Liability.
3. E. continuity of life
4.    F. Taxes

3. Explain your decision, discussing the six issues above.
4. Explain why you rejected other business formats.

Scenario One:

 

Hassan was a successful doctor who can no longer practice his profession due to health issues. He receives disability insurance, which pays for his basic living expenses but not much else. Before he retired, Hassan had approximately $325,000 invested in the stock market. This is the sum total of his assets ~ he never saved for retirement. Hassan would like to have some extra income. Knowing this, Hassan’s friend Luna invites him to invest in her new apartment complex. Luna has been in the apartment-rental business for many years and knows how to manage them. This project is new and exciting because the buildings will include retail stores for places such as Starbucks and trendy boutiques, as well as a few themed restaurants. Based on market research, Luna anticipates that the entire complex will be 100% occupied within three months of opening, and that the growing desirability of the neighborhood will guarantee ongoing rentals. Should Hassan invest and if so, how would he structure this business venture, and why?

Scenario Two:

 

Griselda is a lawyer with two small children. She recently resigned from her demanding law firm to spend more time with her children. At the elementary school Curriculum Night, Griselda chats with her neighbor Murray who knows that she is familiar with contract law. He asks her advice about a breach of contract claim that a customer might file against him. Griselda gives him some advice and the next day he calls and asks if she will represent his company in this matter. Although his company has an attorney, he believes Griselda could handle this matter more efficiently and less expensively. Griselda agrees to do this work for Murray, who effusively thanks her and says that he has several business contacts who would also like to hire her. If Griselda agrees and sets up a small law practice, what business structure should she consider and why?