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This assessment addresses the following course outcomes:

 Apply appropriate elements of the U.S. legal system and the U.S. Constitution to business scenarios for impacting decisions in authentic situations

 Apply concepts of ethics, morality, and civil and criminal law to business scenarios for informed corporate decision making

 Analyze the basic elements of a contract and a quasi-contract for their application to commercial and real estate scenarios

 Differentiate between the various types of business organizations for informing rights and responsibilities

Prompt

Imagine yourself as a paralegal working in a law office that has been tasked with reviewing three current cases. You will review the case studies and compose a

short report for each, applying your legal knowledge and understanding of the types of business organizations. In each of the three reports, you will focus on

areas of law covered in this course. Case Study One focuses on the legal system, criminal law, and ethics. Case Study Two concentrates on contracts and landlord-

tenant law. Case Study Three involves environmental law and business organizations.

Case Study One

Chris, Matt, and Ian, who live in California, have decided to start a business selling an aftershave lotion called Funny Face over the internet. They contract with

Novelty Now Inc., a company based in Florida, to manufacture and distribute the product. Chris frequently meets with a representative from Novelty Now to

design the product and to plan marketing and distribution strategies. In fact, to increase the profit margin, Chris directs Novelty Now to substitute PYR (a low-

cost chemical emulsifier) for the compound in Novelty Now’s original formula. PYR is not FDA approved. Funny Face is marketed nationally on the radio and in

newspapers, as well as on the web and Facebook. Donald Margolin, a successful CEO and public speaker, buys one bottle of Funny Face over the internet. After

he uses it once, his face turns a permanent shade of blue. Donald Margolin and his company, Donald Margolin Empire Inc., file suit in the state of New York

against Novelty Now Inc. and Chris, Matt, and Ian, alleging negligence and seeking medical costs and compensation for the damage to his face and business

reputation. It is discovered that PYR caused Margolin’s skin discoloration. The website for Funny Face states that anyone buying their product cannot take Chris,

Matt, and Ian to court. Novelty Now’s contract with the three men states that all disputes must be brought in the state of Florida.

Specifically, the following critical elements must be addressed:

A. Apply the rules of jurisdiction to the facts of this case and determine what jurisdiction(s) would be appropriate for Margolin’s lawsuit against Funny Face

and Novelty Now, respectively. Consider federal court, state court, and long arm principles in your analysis.

B. Assume all parties agree to pursue alternative dispute resolution (ADR). Analyze the advantages and disadvantages of two types of ADR appropriate for

this case. Be sure to define the characteristics of each in your answer.

C. Applying what you have learned about ADR, which type would each party (Funny Face, Novelty Now, and Margolin) prefer and why?

D. Apply concepts of criminal law and discuss whether or not corporations and/or corporate officers may be held liable for criminal acts.

E. Identify, per the classification of crimes in the text, any potential criminal acts by Funny Face and/or Novelty Now.

F. Assume the use of the emulsifier PYR, at the direction of Chris, is a criminal offense. Apply concepts of criminal law and discuss the potential criminal

liability of Funny Face, Chris, Matt, Ian, and Novelty Now. Include support for your conclusion.

G. Apply at least three guidelines of ethical decision-making to evaluate ethical issues within the case study.

Case Study Two

Sam Stevens lives in an apartment building where he has been working on his new invention, a machine that plays the sound of a barking dog to scare off

potential intruders. A national chain store that sells safety products wants to sell Sam’s product exclusively. Although Sam and the chain store never signed a

contract, Sam verbally told a store manager several months ago that he would ship 1,000 units.

Sam comes home from work one day and finds two letters in his mailbox. One is an eviction notice from his landlord, Quinn, telling him he has to be out of the

apartment in 30 days because his barking device has been bothering the other tenants. It also states that Sam was not allowed to conduct a business from his

apartment. Sam is angry because he specifically told Quinn that he was working on a new invention, and Quinn had wished him luck. The second letter is from

the chain store, demanding that Sam deliver the promised 1,000 units immediately.

Specifically, the following critical elements must be addressed:

A. Analyze the elements of this case to determine whether a valid contract exists between Sam and the chain store. Support your response by identifying the elements of a valid contract in your analysis.

B. Assume there is not a valid contract between Sam and the chain store. Analyze the elements of a quasi-contract and a promissory estoppel to determine

whether the chain store would prevail on a claim of either. Why or why not? Include support for your analysis.

C. Identify the rights and obligations of both the landlord and tenant under a standard residential lease agreement.

D. Based upon those rights and obligations, does Sam’s landlord have grounds to evict? Why or why not?

E. Further, what defenses might Sam raise to an eviction action? Support your response.

Case Study Three

Jeb and Josh are lifelong friends. Jeb is a wealthy wind-power tycoon, and Josh is an active outdoor enthusiast. They have decided to open a sporting goods

store, Arcadia Sports, using Jeb’s considerable financial resources and Josh’s extensive knowledge of all things outdoors. In addition to selling sporting goods, the

store will provide whitewater rafting, rock-climbing, and camping excursions. Jeb will not participate in the day-to-day operations of the store or in the

excursions. Both Jeb and Josh have agreed to split the profits down the middle. On the first whitewater rafting excursion, a customer named Jane falls off the

raft and suffers a severe concussion and permanent damage to her spine. Meanwhile, Jeb’s wind farms are shut down by government regulators, and he goes

bankrupt, leaving extensive personal creditors looking to collect.

Specifically, the following critical elements must be addressed:

A. Identify the main types of business entities and discuss the advantages and disadvantages of each.

B. Recommend a specific business entity for Arcadia Sports and include your reasoning.

C. Based on the characteristics of each type of business entity, determine the type under which Jeb and Josh would be personally liable to Jane for

damages.

D. Based on each type of business entity, analyze the ability of Jeb’s personal creditors to seize the assets and/or profits of Arcadia Sports.

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