Project

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

Overview

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.

Recommendations

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.

Below is the outline for the paper

Legal and Ethical Scenarios

John Q. Student

South University

BUS3055: Business Law for Commercial Transactions

Professor (or Dr.) First Name Last Name

Date

Legal and Ethical Scenarios

            Start your first paragraph here.  The introduction should contain five or six sentences.

Although the introduction does not contain all details, it should provide an overall outline of the subtopics you will cover in your paper.  The introductory paragraph should give the reader a good understanding of what they will learn from your paper. The best way to use this template is to read through the entire document first.  Delete each section as you fill it in with your own content. This template is formatted to meet APA’s requirements of 12 pt font and double spacing between the lines. When you delete the sections one at a time, you will see that your work is formatted properly.  Select four scenarios. If you are repeating the class, select the scenarios you did not submit the first time. 

Scenario 1: Business Organizations

This paragraph addresses the first of four scenarios.   Do not copy the scenario into the paper.   The title of each scenario provides a hint on where you can find information about the topic.  Select a name for your pizza restaurant and use it throughout the assignment.  Start with the textbook, specifically Chapters 41, 42 and 43 (Twomey et al., 2017).   Include at least one limited liability option.  Remember, a limited partnership is not the same as a limited liability partnership.

Answer the question based on your reading and additional research.  Next, you will include supporting details. Your own thoughts are encouraged but look to support your thoughts with credible research from textbooks or library.  If you are using outside sources to lend credibility to your details, this is where you should include them; most importantly, this is also where you use in-text citations to cite other people’s ideas from your sources (Author’s last name, year of publication, page numbers).

More than one paragraph may be needed for some scenarios, so this scenario used multiple paragraphs as an example.  This scenario requires more than one paragraph.  Using one paragraph to address each form of business organization is suggested.  Do not use long block paragraphs.  For example, one paragraph might take up a one-third of a page but not a whole page. 

Scenario 2: Breach of Contract and Remedies

This paragraph covers your selection of another scenario.  Chapter 26 in textbook will help get you started on this question (Twomey et al., 2017).  Do not repeat the scenario.    Be sure to review the UCC provision related to this situation. 

Answer the question based on your reading and additional research.  Next, you will include supporting details. Your own thoughts are encouraged but look to support your thoughts with credible research from textbooks or library.  If you are using outside sources to lend credibility to your details, this is where you should include them; most importantly, this is also where you use in-text citations to cite other people’s ideas from your sources (Author’s last name, year of publication, page numbers).

Scenario 4: Product Liability and Warranties

The next scenario you selected will be answered here.  Chapter 24 of the textbook will get you started on this question (Twomey et al., 2017).  Be sure to discuss three potential theories of product liability. Check the footnotes for possible cases.  You will not know if they are related until you locate the case online.  Skim the background of the case to see if it is related.  The cases in the footnotes are properly formatted.  To cite the case, use the names of the parties and date.  Cases are not required, so you can also find credible articles about this topic.

Scenario 5: Liability on Negotiable Instruments

The next scenario you selected will be answered here.  Chapter 28 of the textbook will be you started on this question (Twomey et al., 2017).  Check the footnotes for possible cases.  You will not know if they are related until you locate the case online.  Skim the background of the case to see if it is related.  The cases in the footnotes are properly formatted.  To cite the case, use the names of the parties and date.

Recommendations

The recommendations section serves as a conclusion for this paper.  This section is important and worth 40 points.  Provide recommendations to address the legal and ethical issues identified in the four scenarios.  Review the rubric to ensure the paper addresses each element.  Check formatting, spelling, word use and citations before submitting to the dropbox.  Within 5 to 10 minutes of submission, a Turnitin score will be posted.  Log back into the dropbox, click on the score and review. Turnitin does not catch all problems, but it will alert you to some text that may not be properly cited or not identified with quotation marks.    Revisions and resubmissions are allowed until 11:59 pm MT on the day the assignment is due unless your instructor allows additional time. 

References

Below are examples to help you with formatting your references.  Be sure to delete these examples before submitting your paper. 

Lastname, A. A., & Lastname, B. B. (Year of Publication). Title of article. Title of Periodical,

Volume(Issue), page numbers. DOI

Lastname, A. A. (Year, Month Date). Title of article. Title of Publication. URL

Lastname, A. A. (Year of publication). Title of work: Capital letter also for subtitle. Publisher

Name.

Twomey, D. P., Jennings, M. M., Greene, S. M. (2017). Anderson’s business law and the legal

environment, comprehensive volume (23rd ed.). South Western Cengage Learning.