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Below assignment is a case study 1 involving Fred and Sally. Detail of the care is on the rubrics. You will need to use the rubrics to answer all the questions for the milestone according to meet the assignment requirement.
I have attached the rubrics to be used and the text book reference for this course is:
Kubasek, N. (2012) Dynamic Business Law. New York: McGraw-Hill/Irwin.
Other sources can be added to produce good result for this project.
Thank you.
BUS 307 Case Study 1 Guidelines and Rubric
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 email should illustrate the issues and 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 1
Fred is well known in his town for his homeopathic cough syrup. After years of encouragement, he has decided to take his miracle cough remedy to market as
“Fred’s Miracle Cough Syrup.” While his cough syrup is homeopathic, one of the key ingredients causes a severe reaction when taken in conjunction with aspirin.
Fred plans to make and bottle his cough syrup in an outbuilding on the family farm. His son, Sam, has been raving to the locals about his father’s cough syrup for
years, and the local drug store and grocer have contacted Fred to place orders as a result. Sam also intends to approach several national chains in an effort to
secure supply contracts for Fred’s cough syrup. Fred has asked Sam to assist him with deliveries, as Sam has a van. Fred would like Sam to be involved with the
business as an employee initially, with the option of making him a partial owner at a later time. Fred and his wife Sally have two children, Sam and Lilly. Both live
in cabins on the family farm with their spouses and children. Fred and Sally engage you as their attorney to assist with the formation of the new business,
including determining the appropriate business entity type, management issues, product liability issues, and estate planning for both the business and family
property. After your initial meeting, you identify and research the following issues.
Specifically, the following critical elements must be addressed:
I. Describe the main types of business entities and their defining characteristics.
II. Apply product liability law and determine what issues are present. How would you advise your client to mitigate those issues?
III. Apply the elements and characteristics of an agency relationship to Sam’s actions. Does Sam’s involvement prior to the business formation, as well as
his anticipated role once the business is formed, create an agency relationship? Why or why not?
IV. Identify potential real property issues based on the location of the business on the family farm. Justify each potential issue.
V. Does the manufacture of Fred’s Miracle Cough Syrup on the family farm necessitate a formal transfer of ownership or possessory rights? Defend your
response.
VI. Identify potential personal property issues based on the use of Sam’s personal vehicle to deliver the product. Justify each potential issue.
VII. Does the use of Sam’s personal vehicle in the course of business expose Sam or the business to any liability issues? Defend your response.
VIII. Identify potential estate planning issues with regard to the business and the family farm. Justify each potential issue.
IX. What estate planning vehicles are available to Fred and Sally should they desire to transfer ownership in the business and family farm, respectively, to
Sam and Lilly equally? What are the advantages and disadvantages to each?
X. Applying your analysis of the issues above, which type of business entity do you recommend for Fred’s Miracle Cough Syrup and why?
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.
Critical Elements Exemplary (100%) Proficient (85%) Needs Improvement (55%) Not Evident (0%) Value
Case Study 1: Business
Entities
Meets “Proficient” criteria and
offers insight into the nuances of
each type of business entity in
relation to one another
Describes the main types of
business entities and their
defining characteristics
Describes the main types of
business entities, but does not
describe their defining
characteristics
Does not describe the main types
of business entities or their
characteristics
10
Case Study 1: Product
Liability
Meets “Proficient” criteria and
cites specific, applicable rules of
law
Applies product liability law to
determine issues and
recommends mitigating actions
Applies product liability law, but
does not recommend mitigating
actions
Does not apply product liability law
to determine issues
10
Case Study 1: Agency
Relationship
Meets “Proficient” criteria and
provides a thorough, step-by-
step analysis with specific
supporting evidence applied to
each element of the relevant
legal test
Applies elements and
characteristics of an agency
relationship to actions to
determine if an agency
relationship was created and
provides justification
Applies elements and
characteristics of an agency
relationship to actions, but does
not determine if an agency
relationship was created, or
justification is not logical
Does not apply elements and
characteristics of an agency
relationship to actions to
determine if an agency
relationship was created
10
Case Study 1: Real
Property
Meets “Proficient” criteria and
cites specific, applicable rules of
law
Identifies potential real property
issues based on the location of
the business on the family farm
and provides justification for
each
Identifies potential real property
issues based on the location of
the business on the family farm,
but does not provide
justification for each
Does not identify potential real
property issues
10
Case Study 1:
Manufacture
Meets “Proficient” criteria and
offers insight into the nuances of
real property issues as they
pertain to business
Determines if the manufacturing
necessitates a formal transfer of
ownership or possessory rights
and defends response
Determines if the manufacturing
necessitates a formal transfer of
ownership or possessory rights,
but does not defend response
Does not determine if the
manufacturing necessitates a
formal transfer of ownership or
possessory rights
10
Case Study 1: Personal
Property
Meets “Proficient” criteria and
cites specific, applicable rules of
law
Identifies potential personal
property issues based on the use
of Sam’s personal vehicle to
deliver the product and provides
justification for each
Identifies potential personal
property issues based on the use
of Sam’s personal vehicle to
deliver the product, but does not
provide justification for each
Does not identify potential
personal property issues
10
Case Study 1: Liability
Issues
Meets “Proficient” criteria and
offers insight into the nuances of
personal property issues as they
pertain to business
Determines if the use of a
personal vehicle exposes Sam or
the business to any liability
issues and defends response
Determines if the use of a
personal vehicle exposes Sam or
the business to any liability
issues, but does not defend
response
Does not determine if liability
issues are present
10
Case Study 1: Estate
Planning
Meets “Proficient” criteria and
cites specific, applicable rules of
law
Identifies potential estate
planning issues and provides
justification for each
Identifies potential estate
planning issues, but does not
provide justification for each
Does not identify potential estate
planning issues
10
Case Study 1: Transfer
Ownership
Meets “Proficient” criteria and
offers insight into the
importance of estate planning
issues in business
Determines estate planning
vehicles available to transfer
ownership equally and provides
advantages and disadvantages of
each
Determines estate planning
vehicles available to transfer
ownership equally, but does not
provide advantages and
disadvantages of each
Does not determine estate
planning vehicle available
10
Case Study 1: Business
Entity
Meets “Proficient” criteria and
offers insight, based on research,
as to why the chosen type of
business entity would be an
appropriate choice for Fred’s
Miracle Cough Syrup
Applies legal and factual analysis
to form a recommendation on
an appropriate business entity
and provides rationale
Applies legal and factual analysis
to form a recommendation on
an appropriate business entity,
but does not provide rationale
Does not apply legal and factual
analysis to form a
recommendation
10
Earned Total 100%
