Analyze three types of business organizations Andrews and Brown might.docx
1. Analyze three types of business organizations Andrews and Brown might
Scenario 1 – Business OrganizationsBailey 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 DiscriminationBorn 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 BankruptcyBayside 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
AgencyDylan 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
CoveredState Farm will not pay for any damages an insured person is legally obligated to
2. 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[Restaurant Name] does not publish the prices of
drinks on the menus. Nik Carlson, a customer of the restaurant filed a lawsuit claiming that
failure to provide drink prices on the menu constitutes an unfair business practice because
customers must make quick decisions about ordering drinks after asking about the price.
Another plaintiff, Joe Swanson, claimed that he was not provided with a cost for his drink
until after he ordered it, which constitutes consumer fraud.Analyze the applicability of state
and/or federal consumer protection laws that Carlson and Swanson can assert against
[Restaurant Name]. Select which party should win and support your answer.Scenario 6 –
Liability on Negotiable InstrumentsAndrews and Brown hired a bookkeeper, Jenice, and
gave her general authority to issue company checks drawn on SunTrust Bank so that Jenice
can pay employees’ wages and other company bills. Jenice decides to cheat her employers
out of $10,000 by issuing a check payable to the Bayside Distributors, one of the suppliers of
seafood and fresh local produce. Jenice does not intend for Bayside to receive any of the
money, nor is Bayside entitled to the payment. Jenice endorses the check in Bayside’s name
and deposits the check in an account that she opened at Wells Fargo Bank in the name
“Bayfood Dist. Co.” Wells Fargo accepts the check and collects payment from the drawee
bank, SunTrust. SunTrust charges [Name of Restaurant] account $10,000. Denice transfers
$10,000 out of the Bayside 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 7 – Breach of Contract and RemediesAndrews ordered 20 round tables to seat
parties of two, 25 square tables to seat parties of four, 5 tables to seat larger parties and 175
chairs. The tables were specially ordered to contain the logo of the restaurant on the top of
each table. Andrews paid for the entire 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.RecommendationsConclude your paper by justifying suggestions 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.