Reference no: EM131103270 , Length: 1800 words

Use the scenario above and properly cited research from your textbook and elsewhere to support your conclusions and give detailed, thorough answers to the following questions. Expectations are answers should be approximately 1-2 pages per question, double spaced, for a total of approximately 6-12 total pages. Please use 12 point Times New Roman font and normal margins.

1. QRI, Inc. currently leases the building and land for its Waterford, MI bottling plant from AJC Properties, LLC. QRI is in the 3rd year of a 10 lease on its bottling plant. The bottling plant is located near major crossroads and is a valuable piece of land. Faubman Properties would like the property to build a large consumer mall. Waterford township initiates eminent domain proceedings to give the land to Faubman arguing that the mall will bring more people to the area and generate more tax dollars for Waterford. Can Waterford do this? If so, why? Under what legal theory? Who will Waterford be taking a property interest from? What parties would be compensated for the taking and how would that amount be determined?

2. Responding to consumer complaints that Power Up! has too many calories, QRI decides to market Power Up in a new smaller 10oz size, made by its can supplier CanMan Industries. QRI doesn't currently have the funds to buy the initial order of 100,000 cans from CanMan Industries so QRI executes a promissory note to CanMan promising to pay CanMan $10,000, with 6% interest payable after QRI sells its 50,000th 10oz can of Power Up! CanMan then transfers the note to its aluminum supplier AluStar Industries, in order to secure a new shipment of the coils of aluminum

CanMan uses to make aluminum cans. AluStar demands payment of the promissory note by QRI. QRI refuses to pay on the note. Does the promissory note qualify as a negotiable instrument? Why or why not? Does QRI have to pay AluStar on the note? What potential argument would QRI put forth as to why it does not have to pay on the note and what potential argument would AluStar put forth as to why QRI does have to pay on the note?

3. Abe Quick is the primary shareholder and CEO of QRI. Abe has just become engaged to be married to Elaine Slow. Abe's grandmother, Mary, has given Abe her diamond wedding ring to give to Elaine as her engagement ring. Abe, upon proposing, gives the ring to Elaine. Unfortunately, the engagement doesn't go well and a few weeks later Elaine breaks off the engagement. The news of this gives Mary a heart attack and she dies. In Mary's will she gives the ring to her daughter Rosemary, however, Elaine is refusing to give Abe the ring back, claiming it was a gift and hers to keep. Abe, as personal representative of Mary's estate, sues Elaine to get the ring back claiming that the ring belongs to the estate and should go to Rosemary. Who gets the ring and why? What legal argument would be made by both sides?

4. QRI is in desperate need of a new delivery truck. It buys a $70,000 delivery truck from Mel's Truck Emporium. QRI buys the truck with a $15,000 down payment and finances the remaining $60,000 through Mel's Truck Emporium. A few days later, QRI, needing money to pay its supplier of high fructose corn syrup, borrows $20,000 from Jake's Financing, LLC, using the truck as collateral. Mel hears of this and is very concerned that his interest in the delivery truck may not be protected. How can Mel protect his interest? What are the steps he should take? What steps could Jake take? What would be the consequences to Mel and Jake if QRI now declared bankruptcy?

5. QRI is currently a closely held S-Corporation. However, Abe has big plans for QRI and would like to take the company public in an IPO. To do so he must convert to a C-Corporation. What are the differences, advantages and disadvantages between an S-Corporation and a C-Corporation? What are the legal and tax consequences of the change? Would Abe have to get the board of director or shareholder's vote to make such a change? What if his sister Eden, a shareholder, objects to the move and believes Abe is doing this in his best interests but not QRI's best interest. What could Eden do to try to stop Abe's move.

6. QRI has a requirement that each of its delivery drivers and each of its salespeople be able to lift 50 pounds over his or her head. As a result of this policy, QRI's delivery drivers and salespeople are almost exclusively male. Sally, an accountant at QRI, has spurned multiple advances from her supervisor Ron. Sally has reported Bob's advances to HR, but nothing has been done yet and Ron keeps asking her out and sending her sexually explicit email. Sally has also been passed over for a promotion recently, even though she was very qualified. Bob in marketing was just fired for what appears like no reason at all. Sally sues for sexual harassment, Bob sues for wrongful termination and Rhonda and Christina sue for being denied a delivery driver and salesperson job, respectively, for failing to be able to lift 50 pounds above their heads. Do they have legitimate claims? What would be QRI's defense in these cases? How could QRI protect itself from such lawsuits?