Legal and Ethical Scenarios
Read the scenarios and the questions that follow. Answer Scenarios 1 and 2, then select any two (2) of the remaining scenarios for a total of four (4) scenarios.
You must also provide an answer for 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 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 four scholarly sources in addition to the textbook or course lectures. By Day 7, prepare a 5 to 7 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 Savannah, Georgia, ________________ operates two coffee shops in Georgia and one in Alabama. Approximately 30% of the employees work full time; however, ____________ primarily hires part-time employees as baristas, delivery drivers, cooks and dishwashers. The company experienced explosive growth over the last four years, but with the growth came increased legal issues. The owners seek your advice on the following legal and ethical issues.
Scenario 1 – Business Organizations
Bailey Andrews and Danita Brown met while working at Starbucks and attending college in Georgia. Bailey studied business at South University, while Dania attended the Art Institute for culinary management. The two friends were tired of working for someone else and opened [SELECT A NAME FOR THE COFFEE SHOP] as a partnership after college. Now that the business has grown, the two partners are considering a new legal form for their business.
Analyze three types of business organizations Andrews and Brown 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 Andrews and Brown and provide support for your choice.
Select a name for the coffee shop and use it when answering the remaining scenarios.
Scenario 2 – Employment Discrimination
Born in 1975, Juanita Mendoza immigrated from Mexico in 2005 and became a U.S. citizen in 2010. Mendoza speaks fluent English with a strong Hispanic accent. Her accent does not interfere with her ability to communicate with others. Mendoza worked as a cook and waitress for 20 years. Although she did not have any formal management experience, Mendoza applied for a shift manager’s job with [Restaurant Name]; however, she was not hired for the position. The restaurant currently employs 5 full time employees and 14 part time employees.
Analyze the possible grounds Mendoza might have for a discrimination lawsuit against [Restaurant Name].
Provide support for each ground selected and then provide arguments that [Restaurant Name] could make to counter each claim.
Explain how your answer might change if the restaurant only employs a total of 12 people.
Scenario 3 – Secured Transactions and Bankruptcy
Bayside Restaurant Supplies agreed to sell 10 new commercial coffee makers and 5 freezers to [Restaurant Name] for $27,500. Bayside retained a security interest in the equipment. [Restaurant Name] agreed to pay for the equipment in equal installments over 48 months.
Evaluate Bayside’s rights as a creditor if [Restaurant Name] files bankruptcy 18 months after purchasing the equipment.
Discuss Bayside’s rights as a creditor if [Restaurant Name] sold the 2 refrigerators and 5 coffee makers for $750 approximately 30 days prior to filing bankruptcy.
Explain how a failure by Bayside to file a financing statement might impact the outcome of both scenarios.
Scenario 4 – Insurance and Agency
Dylan is a delivery driver for [Restaurant Name]. While delivering orders within the scope of employment, Dylan rear-ended a car driven by Vickie Talley. Dylan was insured by State Farm and his policy contained the following information.
Exclusions—What is not Covered
State Farm will not pay for any damages an insured person is legally obligated to pay because of:
Bodily injury or property damage arising out of the use of your insured auto while used to carry persons or property for a charge, or any auto you are driving while available for hire by the public.
Analyze the liability on the part of Dylan, Vickie, State Farm and [Restaurant Name]. Be sure to cover issues related to both insurance and agency.
Scenario 5 – Consumer Protection
Last Completed Projects
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