Reference no: EM133059318
Scenario I - Organizations and Liability
Vance Armstrong was the sole incorporator of Triathlon Training Inc., a corporation designed to operate a training center for triathletes of all ages. The business was incorporated according to Florida law in January 2015, with Armstrong as the sole director and shareholder. Armstrong contributed $20,000 of starting capital, which was just enough to make minor repairs to the property he purchased for $400,000 with a loan from the bank. The corporation had no liability insurance. On June 15, 2015, the center opened for business. Over the next few months, the corporation operated with a profit.
In July, Armstrong took a two-week vacation in France and used a check written on the company bank account to purchase his airline ticket. In September, Armstrong decided to have the pool resurfaced. Because business had slowed and the corporation's bank account did not have sufficient funds, Armstrong wrote a personal check to cover the work. Armstrong feared he would not make enough money through the winter to turn a profit, so he decided to work a part-time job selling fitness equipment as an independent contractor for Bowflex. Armstrong used the training center's office phone to make calls, the copy machine for copies, and the computer for searches. He made a substantial profit, which was maintained in a third bank account not associated with Triathlon Training or his personal account.
On April 1, 2016, a child with a mild learning disability drowned in the pool while training for the local children's triathlon. The parents brought a suit for wrongful death against Triathlon Training Inc. and against Armstrong in his individual capacity as owner. At the time of the suit, the corporation had less than $2,500 in its bank account. Because of these limited funds, the child's parents hoped to recover most of their damages directly from Armstrong, who lived in a mansion on the beach.
Will the parents be successful in holding Triathlon Training Inc. liable for the child's death?
What should the parents argue in order to hold Vance Armstrong liable in his individual capacity? Will the parents prevail? Why or why not?
How could Armstrong have protected himself against this type of potential liability?
Scenario II-Insider Trading
During a session with her doctor, Billy Mooney, Maggie Mason mentioned in confidence the imminent merger of Walgreens with Rite-Aid. Mason's ex-husband, Gus Mason, was on the board of directors at Walgreens. Mooney communicated the information to a securities broker, Olive Green, who immediately made trades in Walgreen's securities for her own account and for her customers' accounts.
Did Mooney, Maggie Mason, Gus Mason, or Olive Green engage in illegal insider trading? Explain the potential culpability of each party. Include possible civil or criminal penalties for each party.
Was the conduct of the parties ethical?
In which column would these receivables be reported
: The discount rates used on long-term promises to give were 3 percent in 2020 and 2019. In which column would these receivables be reported
|
Managing telecommunicating employee
: Discuss the implications of this phenomenon for managers with respect to workforce culture, employee classification, overtime pay requirements,
|
Disparate treatment and disparate impact on discrimination
: Discuss disparate treatment discrimination and disparate impact discrimination how each is proved, and the main defenses available in employment discrimination
|
International business transaction
: Explain the basic structure of an international business transaction, including desirable contract provisions
|
Was the conduct of parties ethical
: Will the parents be successful in holding Triathlon Training Inc. liable for the child's death? Was the conduct of the parties ethical?
|
Determine the Calistoga accounts receivable at December
: alistoga Produce estimates bad debt expense at 0.40% of credit sales. Determine the Calistoga's accounts receivable at December 31, 2021
|
Calculate the percentage retum on your investment
: You purchase 170 shares for $60 a share ($10,200), and after a year the price rises to $70. Calculate the percentage retum on your Investment
|
How much must the stock rise for her to reallze
: If the margin requirement is 40 percent, how much must the stock rise for her to reallze 20-percent return on her invested funds
|
What the variable costs expected
: A company's flexible budget for 22,000 units of production showed sales, $105,600; variable costs, $33,000; What the variable costs expected
|