Person to protect the public from unauthorized practice

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Reference no: EM132195547

PEMS Co. International, Inc., agreed to find a buyer for Rupp Industries, Inc., for a commission of 2 percent of the purchase price, which was to be paid by the buyer. Using PEMS’s services, an investment group bought Rupp for $20 million and changed its name to Temp-Air, Inc. PEMS asked Temp-Air to pay a commission on the sale. Temp- Air refused, arguing that PEMS had acted as a broker in the deal without a license. The applicable statute defines a broker as any person who deals with the sale of a business. If this statute was intended to protect the public, can PEMS collect its commission?

1. States require licenses to perform certain occupations. What are the two purposes for the licenses?

a. (to demonstrate that a special skill has been acquired by a person and to protect the public from unauthorized practitioners/ to regulate the number of practitioners in a field/ to regulate competition/ to attract practitioners to the state/ to raise government revenue)

b. (to demonstrate that a special skill has been acquired by a person and to protect the public from unauthorized practitioners/ to regulate the number of practitioners in a field/ to regulate competition/ to attract practitioners to the state/ to raise government revenue)

2. These two types of licensing statutes are: 1. regulatory, which (regulates practitioners to protect the public/ raises money for the government)and 2. revenue raising, which primarily (regulates practitioners to protect the public/ raises money for the government)

3. States will not enforce contracts entered into by persons who fail to maintain ( regulatory/ revenue-raising)licenses. These contracts are deemed illegal and therefore (void and enforceable/ void and unenforceable)

4. What is an example of a license issued to demonstrate that a special skill has been acquired by a person to protect the public from unauthorized practice? (physician/ waitress/ beekeeper/ gardener)

5. What type of license does a physician hold? (regulatory/ revenue-raising)

6. What type of license does a beautician hold? (regulatory/ revenue-raising)

7. Why? (the public does not need protection from unskilled beauticians/ the public is at risk from unskilled beauticians/ beauticians provide a necessary service/ beauticians require extensive schooling and examinations)

8. Would a court likely enforce PEMS’s contract to find a buyer for Rupp in exchange for 2 percent of the purchase price even though PEMS did not have a broker’s license? (Yes/ No)

9. Why? PEMS’s contract to act as a broker is void and unenforceable because PEMS failed to obtain the appropriate license. A broker license is a (regulatory/ revenue-raising) license designed to protect the public, and the failure to have one makes the contract illegal.

10. WHAT IF THE FACTS WERE DIFFERENT?

What if PEMS was an unlicensed dog-walking service and provided this service to Rupp employees? Would Rupp have to pay? (Yes/ No)

11. Why? Because the purpose of the dog-walking license is to

12. Contracts entered into by persons who fail to maintain a revenue-raising license (may/ may not) be enforced and the unlicensed practitioner fined.

Reference no: EM132195547

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