BUS 307 Case Study 2

BUS 307 Case Study 2

 

BUS 307 Case Study 2

 

For this Case Study, craft a professional email, appropriate in format, tone, and content, to send to your clients, Fred and Sally, with your preliminary thoughts
on the issues within. Your emails should illustrate the issues, relevant law, apply the facts, and support your conclusions with regard to each issue. Always
remember to be clear, kind, and professional in your communications.
Case Study 2
Fred’s Miracle Cough Syrup has hit the market and become a huge success with the burgeoning integrative medicine demographic. Per your advice, Fred has
patented his famous concoction and trademarked the Fred’s Miracle Cough Syrup name and logo. Demand is so high that Fred and Sally are working full-time on
the business. Their children, Sam and Lilly, and their respective spouses, Jane and Tim, have joined the company full-time as well. In fact, Fred and Sally have
made Sam and Lilly part owners of the business. Fred, Sam, and Tim handle the production, sales, and delivery. Sally and Lilly handle the majority of the
administrative and business management tasks, while Jane acts as the bookkeeper. Sally and Fred are the only authorized signatories on the corporate account.
Sally and Lilly have been hard at work securing a new production facility and distribution chain to accommodate an upcoming contract with a national chain.
After locating a large warehouse on several acres, Sally and Lilly approach their local credit union for a loan. The business has only one business credit card used
to purchase supplies for the production of Fred’s Miracle Cough Syrup, and there is a small mortgage outstanding on the family farm. Personal debts of the
individual family members consist of small credit-card balances for Fred, Sally, Sam, and Lilly as well as an auto loan on Sam’s van.
During the commercial loan accounting review process, Sally and Lilly discover that Jane has been siphoning off large amounts of corporate money and “cooking
the books” to hide her actions. Jane has written several checks from the corporate account and forged both Sally’s and Fred’s signatures. Jane has made out all
but one of the forged checks to Don, a local loan shark, in an effort to repay her gambling debts. The check Jane did not deliver to Don was made out to “Cash,”
which she slipped into the collection box at church in an effort to absolve her guilt. The embezzlement was so severe that the family fears that Fred’s Miracle
Cough Syrup is now on the brink of bankruptcy. Meanwhile, Sam’s refusal to enter into an exclusive distribution deal with the local drugstore has enraged Bob,
the owner. Bob has now reverse engineered Fred’s cough syrup recipe and has posted it online in an act of vengeance.
As Fred and Sally tearfully recount the events of the past month, you reassure them that you are on the case, and you begin to ponder the legal issues at hand.
Specifically, the following critical elements must be addressed:
I. What legal defenses might Fred and Sally raise with regard to the checks written by Jane to Don? Why do you believe they will be successful or
unsuccessful?
II. What legal defenses might Fred and Sally raise with regard to the check written by Jane and delivered to the church? Why do you believe they will be
successful or unsuccessful?
III. What, if any, civil claims do Fred and Sally have against Jane based on her actions? Why do you believe they will be successful or unsuccessful?
IV. Analyze the forms of bankruptcy available to the business in this instance (assume the business entity is the same form as you chose in Case Study 1).
What form is most appropriate and why?
V. Analyze the implications of a potential bankruptcy action on the business assets (assume the business entity is the same form
as you chose in Case Study
1). Explain which, if any, are subject to forced sales, liens, or forfeiture.
VI. Analyze the implications, if any, of a potential bankruptcy action by the business on the assets of the individual family members (assume the business
entity is the same form as you chose in Case Study 1). Explain if the assets of business owners are subject to forced sale, liens, or forfeiture.
VII. What legal recourse does Fred have against Bob for infringement of intellectual property rights? Do you believe he will be successful? Why or why not?
Rubric
Guidelines for Submission: Your “email” should be 1 to 2 pages, double-spaced, use 12-point Times New Roman font, and follow APA 6th edition format for
layout and citations.
Instructor Feedback: This activity uses an integrated rubric in Blackboard. Students can view instructor feedback in the Grade Center. For more information,
review these instructions.
Critical Elements Exemplary (100%) Proficient (85%) Needs Improvement (55%) Not Evident (0%) Value
Case Study 2: Legal
Defenses
Meets “Proficient” criteria and is
well supported using
appropriate sources
Determines the legal defenses
with regard to the checks
written by Jane to Don and
explains why defenses would be
successful or unsuccessful
Determines the legal defenses
with regard to the checks
written by Jane to Don, but does
not explain why defenses would
be successful or unsuccessful
Does not determine the legal
defenses with regard to the checks
written by Jane to Don
14
Case Study 2: Church Meets “Proficient” criteria and is
well supported with appropriate
sources
Determines the legal defenses
with regard to the check written
by Jane and delivered to the
church and explains why
defenses would be successful or
unsuccessful
Determines the legal defenses
with regard to the check written
by Jane and delivered to the
church, but does not explain why
defenses would be successful or
unsuccessful
Does not determine the legal
defenses with regard to the check
written by Jane and delivered to
the church
14
Case Study 2: Civil
Claims
Meets “Proficient” criteria and
provides specific supporting
evidence applied to each
element of the relevant legal
test
Determines civil claims available
to Fred and Sally against Jane
and evaluates potential for
success of those claims
Determines civil claims available
to Fred and Sally against Jane,
but does not evaluate potential
for success
Does not determine civil claims
available to Fred and Sally against
Jane
14
Case Study 2:
Bankruptcy
Meets “Proficient” criteria and
offers research to illustrate why
the chosen types of bankruptcy
would be available based on the
chosen type of business entity
Analyzes available forms of
bankruptcy based on the chosen
type of business entity and
determines which form is most
appropriate and why
Analyzes available forms of
bankruptcy based on the chosen
type of business entity, but does
not determine which form is
most appropriate or why
Does not analyze available forms
of bankruptcy based on the chosen
type of business entity
15
Case Study 2: Business
Assets
Meets “Proficient” criteria and
offers a nuanced insight into the
relationship between a
bankruptcy action by a business
and business assets
Analyzes implications of
bankruptcy on business assets
and explains which are subject
to forced sales, liens, or
forfeiture
Analyzes implications of
bankruptcy on business assets,
but does not explain which are
subject to forced sales, liens, or
forfeiture
Does not analyze the implications
of bankruptcy on business assets
14
Case Study 2: Family
Members
Meets “Proficient” criteria and
offers a nuanced insight into the
relationship between a
bankruptcy action by a business
and personal assets
Analyzes implications of
bankruptcy on personal assets of
individuals and explains if the
assets are subject to forced sale,
liens, or forfeiture
Analyzes implications of
bankruptcy on personal assets of
individuals, but does not explain
if the assets are subject to
forced sale, liens, or forfeiture
Does not analyze implications of
bankruptcy on personal assets of
individuals
15
Case Study 2:
Intellectual Property
Rights
Meets “Proficient” criteria and
cites specific, applicable rules of
law
Determines the legal recourse
Fred has against Bob and
explains why Fred will be
successful or unsuccessful
Determines the legal recourse
Fred has against Bob, but does
not explain why Fred will be
successful or unsuccessful
Does not determine the legal
recourse Fred has against Bob
14
Earned Total 100%