Details of this Paper

Business Law -Homework Assignment No. 2 ? Spring 2014




Question;Q. 1. True or False: A franchisor can suggest retail prices but cannot mandate them. (You onlyneed to answer True or False by circling or highlighting your answer)(5 points).TRUEFALSEQ. 2. What are the advantages and disadvantages associated with having a sole proprietorship?(10 points)Q. 3. Slav is interested in buying a franchise from Oz Inc. For Slav to make an informeddecision concerning this purchase, Oz must disclose in writing or online: (Circle or highlightyour answer)(5 pts.)a.general estimates of costs and sales, but not the basis for them.b.material facts such as the basis of projected earnings information.d.start-up requirements, but not renewal conditions.Q. 4. Global Experts, L.P., is a limited partnership, with $100,000 in declared but unpaid profits.Global Expert?s creditors include Friendly Credit Corporation for $5,000 and Gwen, one ofGlobal Expert?s limited partners, also for $5,000. When Harry, one of Global Expert?s generalpartners, decides to retire, the other general partners vote to liquidate and dissolve the firm. Thelimited partners, who are not asked their opinions, want Global Experts to continue in businessand file a suit against the general partners to compel this result.4(a). Can the court order Global Experts, L.P. to continue? Yes or No, Explain why indetail (10 points).4(b). If not, what is the priority of the distribution of Global Expert?s assets on itsdissolution? Explain. (5 points).Q. 5. List the five ways in which a partner can be dissociated from a partnership under UPA 601.(5 points).Q. 6. James, Sam, and Kristen want to form Sales-to-Infinity, LLC (limited liability company).6(a) What information do they need to include in their articles of organization (5 points)?6(b) What should they provide in their operating agreement (5 points)?Q. 7. LLC?s can be managed in one of two ways. State what these two options are and explainhow management of the LLC works under each option (10 points).Q. 8. True or False: Bonds represent the purchase of ownership in a business firm. (You onlyneed to answer True or False by circling or highlighting your answer) (5 points).TrueFalseQ. 9. Linda and Rick Smith are a married couple who want to open a Pizzeria called ?Smith?sSpicy Pepperoni Pizzeria? with their two kids ? Matt and Leslie. Linda and Rick want all four ofthem to be equal shareholders. However, they do not want their children to be able to sell theirshares to someone outside of the family without their approval. What type of corporation wouldyou recommend the Smith?s form to alleviate Linda and Rick?s concerns about transfer of sharesto non-family members? (5 points).Q. 10. James is a controlling shareholder in Widgets, Inc. He often uses the Widgets, Inc.checkbook to pay not only the bills of the corporation, but also, his own personal bills such as hismortgage payment and to treat himself to spa days. In fact, James pays all of his own bills withthe Widgets, Inc. checkbook even though he has substantial wealth of his own. However, James?spending habits bankrupt Widgets, Inc. and Widgets, Inc. has to go out of business. Severalcontractors hired by Widgets, Inc. were not paid what they were owed and they want to sueJames personally in order to receive their money since there is no money left in Widgets, Inc.10(a) What action would the court have to take in order to hold James personally liablefor Widgets, Inc.?s corporate debts and obligations? (5 points)10(b) What are four factors that could be shown to the court in order for the court to takethe action in the answer to 10(a) that would hold James personally liable for Widgets,Inc.?s corporate debts and obligations? (5 points)Q. 11. Mitch is a director and officer of Numero Uno, Inc. Mitch makes a marketing decisionfor the company that results in a dramatic decrease in profits for Numero Uno and itsshareholders. The shareholders accuse Mitch of breaching his fiduciary duty to the corporation.11(a) What is Mitch?s best defense against this accusation? (5 points)11(b) What three things would Mitch have to prove to prevail under this defense? (5points)Q. 12. Corporate directors will often have many different business affiliations and they maysometimes sit on the board of more than one corporation. What must a corporate director do, asrequired by their fiduciary duties, to avoid any possible conflict of interest or a breach of theirfiduciary duties? (10 points)


Paper#59174 | Written in 18-Jul-2015

Price : $30