Reference no: EM131442259

Bill and Tom and Gazelle have an idea for a retail sporting goods store. Bill will manage the store, Gazelle will design the hooded sweatshirts, jersey's and swimwear which will be the focus of their line. Tom will be their spokesperson. Gazelle tells Bill and Tom that she will prepare and file articles of organization and other corporate documents necessary to register their business name and incorporate in Massachusetts. Their business makes a profit of $14,000,000.00 in their first 12 months of operation. Bill is busy with other ventures and spends no time in the store. Tom wants to leave the business and cash out. Gazelle who has been working 50 hours a week in the store says no to both of them -- she wants to continue with the business venture and bring in a new owner Heidi. Gazelle has received but has not yet paid for $200,000.00 in merchandise she has ordered and received without Tom or Bill's knowledge. Gazelle still has in her expensive briefcase, but has never filed, any legal documents for the business. What kind of business if any do they have? What are Bill's rights? Tom's rights? Gazelle's rights? Heidi's rights? What are the legal issues and applicable rules of law?