Reference no: EM134658 , Length: 5000 Words

Question

1. What is a limited liability company? Describe the advantages as well as disadvantages of this type of business ownership?

2. Compare as well as contrast the following forms of business organization: sole proprietorship, general partnership, limited partnership, Limited Liability Company and corporation as to ease of formation, liability of owners, management and tax implications.

3. Andy wants to begin his own business. He has definite to rent space in a strip mall as well as open a pet shop. In addition he will provide dog grooming services. He figures he can do virtually everything himself, though he will need to hire a part-time employee on an ‘as needed' basis. His friend, Lacy has agreed to work when needed.

Andy is considering functioning his business as a sole proprietorship. What are the primary legal advantages as well as disadvantages to this form of business ownership for Andy's pet shop?

4. What is a corporation? Describe the advantages as well as disadvantages of this type of business ownership? As well, briefly deliberate the limitations on a corporation electing Subchapter "S" status.

5. Jack and Jill were living together. Jack wanted to begin a small retail store, however didn't have good credit. Jill, whose credit was excellent, signed loan agreements with Jack therefore he could borrow the money to start the business. Jack utilized business cards that stated he was the ‘owner' of the business. He and Jill filed separate tax returns. Jack stated he was self-employed as well as claimed the business was a sole proprietorship. The money that was made from the store was placed into a joint checking account owned as well as used by Jack and Jill. When there were important decisions to be made about the business such as deciding to franchise the business, the choice was made jointly by Jack and Jill.

Five years afterward the business was started, Jill left Jack. She claimed she was permitted to one-half the business's profits since she as well as Jack were partners. Jack disagreed as well as claimed they never had a partnership. Discuss Jill's claim.

7. Most of the goods contained in a freight train (a common carrier) were destroyed when a tornado wrecked the train. The carrier was sued for damages by all the shippers that had merchandise on the train. Is the carrier strictly accountable for the damage done to the goods by the tornado?

8. Deliberate whether or not the following common transactions are bailments and if so, who is the bailor/bailee as well as what type of bailment is involved:

A) Renting storage space in Farmer's Frank's enormous barn to keep your classic car out of the snow and ice of winter. The rental agreement provides for $100/month rent as well as Farmer Frank has the only access to the barn.

B) Appointing a moving company to move your belongings to a new residence.

C) Loaning your lawn mower to your neighbour.

D) Parking your car in a ‘park and lock' parking lot.

9. Deliberate the tenant's and the landlord's elementary duties under a landlord-tenant relationship.

10. Sandra as well as Joe own a hobby farm as tenants in common. They likewise own a vacation home as joint tenants. What is the difference among the tenancy in common and joint tenancy?

11. The Rameys are selling their home. They didn't set forth in the sales agreement whether the washer and dryer, the draperies as well as a cherry corner cabinet which was in the dining room were to be comprised in the sale or whether they were planning to take these items with them. The buyers are claiming these items are fixtures as well as should stay with the house. The Rameys are claiming they are portable goods and they shouldn't be part of the real estate which was sold. Define ‘fixtures,' identify the tests used to control whether an item is a fixture as well as explain whether you think each of the contested items is a fixture and why or why not.

12. What is BATNA reservation price, ZOPA as well as value creation through trades?

13. Deliberate the factors a court will consider when deciding the issue of whether a landlord is liable for a criminal attack against a tenant.

14. Lauren as well as Hayden own residential houses side by side. Among the houses, is one driveway which provides mutual access to both back yards. Lauren really owns the property where the driveway sits. Nonetheless, Hayden has the right to use the driveway to access his back yard. What type of easement does this situation label, an easement appurtenant or an easement in gross? What are the differences among the two types of easements?

15. The city of Richmond needs land owned by the Neelans to enlarge a middle school. The Neelans don't want to sell. Deliberate what course of action the city can take and the basis for this action.

16. Concisely discuss a patent, copyright and trademark.

17. Stuart is vying for a promotion, however faces competition from a co-worker, Brenda. Without authorization, Stuart accesses stored company records as well as discovers an unfavourable e-mail message Brenda had written about the company. Stuart directs the message to his supervisor in hopes of keeping Brenda from getting the promotion. Thoughtful whether Stuart has violated any statute and, if so, what sanctions he may face.

17. Deliberate the four main provisions of the Clean Air Act.

18. Trent was the production manager at HGB Inc. Under his supervision, HGB produced into the air three times the amount of toxins it is allowed under the Clean Air Act. Has Trent violated the law? What significances might he face?

19. James purchased an abandoned lot. When he started to grow the land he discovered several underground storage tanks containing hazardous waste buried on the site. He claims the seller, Richards, is accountable to him for the cost of removing the tanks. Richards's rights he owned the lot for 20 years and never knew of the underground tanks. Richards argues he purchased the land from Thomas in addition to that Thomas or his heirs are liable for the cost of removing the underground tanks. Explain whether Richards is liable to James. Does Thomas or do his heirs have any liability to James or Richards?

20. The Trimbles apply to Community Savings & Loan for an installment loan of $20,000 to remodel their bathroom. Discuss the disclosures Community is required to make.

21. Describe the difference between a debit and a credit card as well as discuss the potential liability for a lost or stolen card.

22. Richard received his credit card bill as well as noticed an error. He wrote to the company the next week, pointing out the error in his bill. Under the law what is the credit card's obligation once it receives Richard's letter?

23. Brooke uses her credit card to purchase a lawn mower at the local big box hardware store, but when she tries to use the mower for the first time, she finds it is not self-propelled as advertised. Does she have any recourse?

24. Fast Auditors prepared audited financial statements for Mega Company's registration statement in compliance with the 1933 Securities Act. John bought stock in Mega Company. It was exposed that the financial statements prepared for the registration statement contained some significant omissions. John sued Fast Auditors to recover his investment when Mega Company turned out to be a bad investment. What should John prove to recover from Fast Auditors?

25. An auditor defendants its client is committing illegal acts that will have a material impact on its financial statements. What is the auditor lawfully required to do and under what circumstances would the auditor directly notify the SEC?

26. Ron is an accountant who was contacted by Zebra Toy Company to make financial statements. Zebra Toy Company told Ron that it wished to present these documents to Lion Wholesalers, Inc., a large supplier of toys. If Lion is convinced that Zebra Toy Company is monetarily solid, it will issue Zebra a large line of credit.

After Ron prepares the financial documents, Zebra offerings the information to Lion Wholesalers and likewise to Tiger Toy Company, another wholesaler of toys. Zebra wishes to obtain a line of credit from Tiger as well as from Lion. If Ron committed a serious error by overstating Zebra Toy Company's financial soundness besides the two creditors, Lion and Tiger, are damaged as a result, can these third parties recover damages from Ron? Explain.

27. Nancy is an auditor. She works in a state that uses the Ultramares Doctrine. She falsely prepared financial documents for her client, Star, Inc. Her client offered the information to Moonglow, Inc. Moonglow was a potential creditor of Star, Inc., as well as was seriously damaged by the fraudulent financial information. Moonglow sued Nancy. She claims she isn't liable to Moonglow, a third party, since she wasn't provided with its name at the time the audit was prepared. Is she accountable to Moonglow? Explain.

28. Describe the overall purposes of the Sherman Antitrust Act, the Clayton Act, and the Robinson-Patman Act. How do each of these Acts relate to each other?

29. Describe when monopoly power is not a violation of Section 2 of the Sherman Act.

30. What are some of the advantages for a business to incorporate in Delaware?

31. Describe how a corporation is terminated.

32. MegaCorp has five directors. The company has 1,050 shares of voting stock. Jessica would like to purchase sufficient stock to elect herself to the board of directors. The company permits for cumulative voting. Elucidate the concept of cumulative voting and likewise state how many shares of MegaCorp stock Jessica will need to possess to assure herself a place on the board of directors.

33. Describe and discuss the purposes of the "business judgment rule."

34. Describe how the Sarbanes-Oxley Act affects Haletronne Co., a publicly traded corporation.