Overview
INSTRUCTIONS
*THIS ASSIGNMENT COVERS THE MAJORITY OF UNIT 3 OF YOUR BOOK REGARDING THE EMPLOYMENT BUSINESS ENVIRONMENT. ALL ANSWERS BELOW CAN BE FOUND WITHIN UNIT 3, AND THIS WILL HELP REVIEW YOU FOR YOUR FINAL EXAM, WHICH COVERS A LARGE AMOUNT OF WHAT IS WITHIN THESE CHAPTERS REGARDING BUSINESS TYPES.
*IF YOU USE A DIRECT QUOTE IN THIS ASSIGNMENT, PLEASE PUT QUOTES
AROUND IT AND THE (BOOK) SHORT CITE BEFORE YOU END THE SENTENCE TO AVOID
PLAGIARIZING. ADDITIONALLY, PLEASE NOTE THAT STUDENTS WILL MAKE A HIGHER GRADE ON THIS ASSIGNMENT IF THEY DO NOT USE BLOCK QUOTES OR THEY TAKE THE TIME TO EXPLAIN A QUOTE USED IN THEIR OWN WORDS IN THEIR ANSWERS. THE REASON STUDENTS WILL BE REWARDED IS BECAUSE IT SHOWS ME YOU COMPREHEND THE CONCEPT, OR MADE SENSE OF WHAT YOU READ IN YOUR OWN WORDS AND MIND. IT IS PREFERABLE FOR STUDENTS TO USE ONE OR TWO OUTSIDE SOURCES AND CITE TO THOSE SOURCES (WITH QUOTES, MLA SHORT CITE TO A WORKS CITED AT THE END OF THE ASSIGNMENT). I FIRMLY BELIEVE THAT HARD WORK PAYS OFF, THEREFORE, THOSE WHO SHOW THEY HAVE PUT IN THE
WORK OR GO ABOVE AND BEYOND FOR THIS ASSIGNMENT WILL RECEIVE HIGHER GRADES.
*AS BEFORE, YOU WILL NEED TO ANSWER ALL QUESTIONS TO THE PROMPT AND THEIR COMPONENTS WITHIN A QUESTION. PLEASE ANSWER IN A QUESTION-AND-ANSWER FORMAT AND PROVIDE EXPLANATION IF THE ANSWER
CALLS FOR IT SO THAT YOU WILL RECEIVE FULL CREDIT.
*FOR EASE OF GRADING, PLEASE KEEP THE QUESTIONS WITHIN YOUR ASSIGNMENT TEXT AND SIMPLY PROVIDE YOUR ANSWER BENEATH EACH QUESTION.
FOR EXAMPLE:
1. What form of business enterprise is Doody Calls Service and what is the relationship of Mel, Sean, and Joe to that business?
-Put your answer here, and then move to the next question and
put your answer beneath it. In other words, include the questions in your
response post. It makes it much easier to grade.
Assignment 2- "Doody Calls Y’all" Total Possible Points: 100
Mel and Sean decided to form a business to clean up dog poop from yards on a monthly subscription basis. They called their business “Doody Calls.” They agreed to split the costs and profits 50/50. Sean transferred her van to the business, and they repainted it with the business name on all sides. The cost of all other start up equipment was shared evenly by Sean and Mel. They had no written agreement governing their business arrangement. The business took off and soon they had more customers than the two could handle. They approached Joe, an old high school friend, and in lieu of wages, he agreed to handle one third of the Doody Calls customers in exchange for 10% of the profits. Joe had no responsibility to contribute to the costs of the business should expenses exceed revenues.
While scooping poop, Sean accidentally let loose a customer’s rare pedigree dog and it was never recovered. The customer demanded that Sean reimburse him for the value of the dog, $3,000. Sean paid the customer immediately to avoid legal action, and then submitted the cost for inclusion in the business’ monthly calculation of costs at the end of the month. Mel objected, she said it was Sean’s fault that the dog was lost, not hers, and that therefore Sean should bear the cost alone.
Mel and Sean each received an equal share of the profits at the end of each month. While Mel was doing as much poop pick-up as Sean, she was also handling all of the bookkeeping and business correspondence. Mel asked Sean to pay her an additional administration fee based on the number of hours she performed such additional duties. Sean did not agree to Mel’s request. Mel is now disillusioned with being in business with Sean and considers calling it quits. She comes to you to find out how the business assets would be split up if she ended the business. She specifically wants half the value of all of the business assets remaining after the business is closed, plus an additional payment to make up for the extra administrative duties she has performed.
Finding the Answers to the Questions: Most of the information you need to answer these questions is in your book in Unit 3. There may be a few questions that you might have to the internet for, but not many. There is one question that is from a chapter in unit 3, but it isn’t found within the pages of Chapters 17 & 18, so it is up to you to figure out where in unit 3 the information is. Remember, this assignment takes the place of a research paper.
1. What form of business enterprise is Doody Calls Service and what is the relationship of Mel, Sean, and Joe to that business?
2. How should the cost of the lost dog be handled in order to comply with Alaska law?
3. What advice will you give Mel with respect to her rights to half of the business’ remaining assets and extra compensation should the business be terminated?
4. Re-read the prompt and assume Mel hired Sean and Joe instead. Additionally, no profit sharing occurs with Joe or Sean, nor any expenses placed upon either party. Instead, Mel handled all of the bookkeeping and financial responsibilities in addition to picking up poop (although she generally left most of the poop responsibilities with customers to Sean). What type of business would this be? Take time to explain your answers addressing the following bulleted points:
List the business type you believe exists between Mel, Sean, and Joe, and explain your legal justification for it being this type of business as if you were a lawyer. (Explain what role Mel has, what role Sean has, and what Role Joe would have in this business type) Hint: If you are thinking Question 4 business type is a sole proprietorship situation, please think again. Question 5 addresses sole proprietorship. It doesn't make sense that you would be asked about sole proprietorships on two consecutive questions.
Explain how this business type is generally formed
Explain the additional ways this business type may be enforced and the criteria for the enforcement and how this would apply to Doody Calls?
Explain what document is used to form this type of business if any, and who would file it? (Mel, Sean, or Joe).
Explain all of the duties of all the various parties within this type of Business (use your book to find out based upon the hint I gave- all of these questions are directly from the chapter of the book addressing this business type, all you have to do is figure out which business type it is, and these bulleted questions will be easy to answer):
-Explain who fits what party role for Doody Calls.
Mel
Sean
Joe
Explain what authorities the parties have in this type of Business if:
Sean orally agrees to pick up poop for Doody Calls
Joe decides to help with 10% of Doody Calls’ business to accomplish the objectives of the business.
The owner of the rare pedigree dog comes to Mel asking for reimbursement of her dog.
The owner of the rare pedigree dog comes to Mel asking for reimbursement of her dog and Mel denies she has authority to do anything about her lost dog.
Sean had been at an owner’s home eating chocolate while he picked up poop, and their dog ingested the chocolate. Immediately, Sean took the dog to a nearby emergency vet without informing Mel. Would this be permissible for Sean to do in his role within this business type?
After Sean took the chocolate eating dog to the emergency vet, the cost to pump the dog’s stomach to keep it from dying from the chocolate it ingested was $10,000. Would this unauthorized act of Sean’s be permissible? (Explain the concept that permits or does not permit Sean’s Actions)
Walk me through the Contractual Liabilities in existence within this type of business venture and the various concepts within.
Walk me through the Torts and Crimes Liabilities in existence within this type of business venture and the various concepts within.
Explain how this type of business Terminated through Acts of the Parties
How could Mel cause this type of business to terminate?
How could Sean cause this type of business to terminate?
How could Joe cause this type of business to terminate?
What are the specific requirements for Notice of Termination and responsibilities of the parties within the business?
How is this type of business Terminated through Operation of law in the various scenarios (thoroughly explain each of your answers- this is straight from your book under the termination heading for this business type):
-Mel’s memory goes, she begins to see ghosts and she loses her memory from Alzheimer’s.
-A law is passed in the state where Doody Calls is located making it a requirement that all dog owners be responsible for picking up their own dog’s poop to avoid attracting polar bears.
-Inflated gas prices during a month’s long snowstorm make it super expensive to travel to the same amount of homes for the cost of services Doody Calls provides. The price they must start charging is not a price any of Doody Calls clients will agree to pay going forwards.
As a result of inflated gas prices, Doody Calls’ financial status deteriorates to the point where they can no longer operate.
If Mel lived in Ukraine and Sean lived in Russia and they worked together to do business for Doody Calls in both countries before Russia began their war with Ukraine.
5. What if Mel had decided to start Doody Calls solely on her own? (define what this type of business venture is and what it entails). Thoroughly explain what the advantages and disadvantages of that type of business organization are:
*Business Type Defined-
*Explain Formation- (including any documents used and place it is filed)
*Explain the Advantages & Disadvantages-
6. What if Mel and Sean had decided to make Doody Calls a Limited Partnership (“LP”), what would need to change to form it? (use the following to explain)
*Business Type Defined-
*Explain Formation- (including document used and place it is filed)
*Explain the Liabilities of the Partners-
*Explain the Advantages & Disadvantages-
*Explain Dissolution-
7. What if Mel and Sean had decided to make Doody Calls a Limited Liability Partnership (“LLP”), what would need to change to form it? (use the following to explain)
*Business Type Defined- (including document used and place it is filed)
*Explain Formation- (Including document used and place it is filed)
*Explain the Liabilities of the Partners-
*Explain the Advantages & Disadvantages-
*Explain Dissolution-
8. What if Mel and Sean had decided to form a Limited Liability Company (“LLC”), what would need to change to form it? (use the following to explain)
*Business Type Defined- (including document used and place it is filed)
*Explain Formation-
*Explain what the liabilities of an LLC and its members are?
- *Explain what the difference is between a member-managed LLC and a manager-managed LLC?
*Explain the Jurisdictional Requirements-
- *Explain the Advantages & Disadvantages of LLC and its Members-
*Explain the Flexibility in Taxation-
*Explain Management of an LLC-
*Explain what is required for the LLC Operating Agreement?
*Explain what you have to do to dissociate from an LLC as a member and what the aftereffects of dissociation are-
*Explain what Dissolution and winding up for an LLC is?
9. [Bonus Question—SKIP TO QUESTION 10 IF YOU DO NOT WANT THE BONUS POINTS—worth up to 15 Points Suppose Mel and Sean’s Doody Calls partnership really takes off and becomes big, would you turn it into a corporation?
- (Do not consider the prospect of potential earning power of Doody Calls in your answer). Instead, use the following steps to formulate your answer:
Look at Chapter 18 and determine why you would or would not choose a corporation if you were Doody Calls then write a concluding sentence explaining why you would choose a corporation.
Then, use the IRAC method explained in Chapter 1 page 11 of your textbook to analyze the advantages and disadvantages of the following factors to make your decision: definition of a corporation, corporation formation, cost and procedures involved in forming a corporation, corporate personnel, shareholders, taxes, how you would classify your corporation, corporate financing, corporate powers, corporate liability, directors, officers, and shareholders’ roles, etc.
10. If you had the choice, explain what business organization out of the ones you outlined above that you personally think is best for Doody Calls and why?