Read the scenarios and the questions that follow. Select any four (4) scenarios and the recommendations section. Identify and analyze the legal issue(s). Apply legal concepts and make potential arguments as directed using laws, cases, examples, and/or other relevant materials. Consider using short headings (consult APA materials) to separate the topics. Summarize the facts; do not copy the scenarios into the paper. Support your answers with information from the textbook and at least five scholarly sources other than the text and course lectures. By the due date assigned , prepare a 5 to 8 page paper that identifies the legal issues and potential solutions and answers all questions presented, supported by relevant legal authority. Do not exceed the page length by more than two pages
Headquartered in Bristol, Tennessee, [Restaurant Name] operates two pizza restaurants, one in Bristol, Tennessee and one is Bristol Virginia. Approximately 35% of the employees work full time; however, [Restaurant Name] primarily hires part-time employees as pizza makers, delivery drivers, and order takers. The owners seek your advice on the following legal and ethical issues.
Scenario 1 – Business Organizations
Ashton Brown and Miranda Connor met while working at Papa Johns and attending college in Tennessee. Ashton studied business, while Miranda studied hospitality management. The two friends were tired of working for someone else and opened [SELECT A NAME FOR THE RESTAURANT].
Analyze three types of business organizations Brown and Connor might consider for their existing restaurant. Be sure to consider at least one limited liability option. Explain the advantages and disadvantages of each type.
Select one type of business for Brown and Connor and provide support for your choice.
Select a name for the pizza restaurant and use it when answering the remaining scenarios.
Scenario 2 – Breach of Contract and Remedies
Brown ordered 10 high top tables to seat parties of two, 10 square tables to seat parties of four, 2 tables to seat larger parties and 100 chairs. The tables were specially ordered to contain the logo of the restaurant on the top of each table. Brown paid 50% of the shipment when placing the order; however, the supplier was responsible for making the shipping arrangements. The tables and chairs arrived three weeks later; however, five were scratched and damaged. Seven of the chairs were missing.
Analyze the restaurant’s options related to the damaged tables and missing chairs. Be sure to address the applicability of the UCC to the transaction.
Scenario 3 – Risk of Loss
Brown purchased two new commercial ovens from Restaurant Supply Wholesalers for $9000. The wholesaler selected Averitt Express to deliver the ovens to Brown using the terms FOB Bristol Tennessee. Brown did not purchase any additional insurance. Averitt delivered the ovens; however, they were both damaged.
Assuming the parties did not discuss when title passed, when did title pass for this shipment?
When did the risk of loss pass? What are Brown’s options related to the damaged goods?
Scenario 4 – Product Liability and Warranties
After some of the customers complained of becoming sick after eating at [Restaurant Name], it was determined that the sausage was contaminated with E. coli, a bacteria that causes abdominal cramping, fever and other gastrointestinal discomfort.
Discuss a minimum of three theories of product liability and select the one that is most likely to apply to this case. Explain why you selected the theory and provide support for your choice.
Scenario 5 – Liability on Negotiable Instruments
Brown and Connor hired a bookkeeper, Erika, and gave her general authority to issue company checks drawn Regions Bank so that Erika can pay employees’ wages and other company bills. Erika decides to cheat her employers out of $15,000 by issuing a check payable to East Tennessee Packaging (ETP), the supplier of the boxes and other paper goods. Erika does not intend for ETP to receive any of the money, nor is ETP entitled to the payment. Erika endorses the check in ETP’s name and deposits the check in an account that she opened at Wells Fargo Bank in the name “East Tennessee Packaging Dist. Co.” Wells Fargo accepts the check and collects payment from the drawee bank, Regions. Regions charges [Name of Restaurant] account $50,000. Erika transfers $15,000 out of the ETP account and closes it. [Name of Restaurant] discovers the fraud and demands that the bank return the money.
Evaluate which party or parties bear the loss.
Scenario 6 – Checks and EFT Fraud
Since Brown and Connor did not have much capital and tried to save money where they could; the business used Brown’s personal account for business transactions. Brown monitored his account once a week using the online portal furnished by his bank, Regions. On Friday night, Brown noticed that $3400 had been withdrawn from his account on two separate occasions on Thursday. Brown knew that he had not spent that amount of money one time, much less two times in one day. He is afraid that someone fraudulently accessed his account. The following Monday was Labor Day and banks would be closed; however, one branch office was open for four hours on Saturday. On Saturday morning, Brown checked his account again and found that a check for $175 cleared the bank. Devon was able to view a copy of the check and noticed the check was written using another party’s name and address using his routing and account number.
What course of action would you advise Brown to take on Friday night and/or Saturday morning related to the missing funds?
Will Brown be liable for the moneys withdrawn from his account? Explain why or why not. HINT: Outside sources will likely be necessary.
Conclude your paper by justifying suggestions and procedures for [Restaurant Name] to help prevent future occurrences of these types of legal problems. Identify any ethical issues you find and present recommendations as applicable. Be specific in your recommendations.
Use APA format for the paper. Review the APA materials located in the Library Research Guide.
Name your document SU_BUS2038_W3_LastName_FirstInitial.doc
Submit your document to the Submissions Area by the due date assigned.