Best writers. Best papers. Let professionals take care of your academic papers

Order a similar paper and get 15% discount on your first order with us
Use the following coupon "FIRST15"
ORDER NOW

Fred’s Miracle Cough Syruphas hit the market and become a huge success with the burgeoning integrative medicine demographic

/in /by

Case Study 2

Fred’s Miracle Cough Syruphas hit the market and become a huge success with the burgeoning integrative medicine demographic.Per your advice,Fred has patented his famous concoction and trademarked the Fred’s Miracle Cough Syrupname and logo. Demand is so high that Fred and Sally are working full-time on the business. Their children, Sam and Lilly,and their respective spouses,Jane and Tim,have joined the company full-time as well. In fact, Fred and Sally havemade Sam and Lilly part owners of the business.

Fred,Sam,and Timhandle the production, sales,and delivery. Sally and Lilly handle the majority of the

administrative and business management tasks, while Jane acts as the bookkeeper. Sally and Fred are the only authorized signatories on the corporate account. Sally and Lilly have been hard at worksecuring a new production facility and distribution chain to accommodate an upcoming contract with a national chain.

After locating a large warehouse on several acres,Sally and Lilly approach their local credit union for a loan.

The business has only onebusiness credit card used to purchase supplies for the production of Fred’s Miracle Cough Syrup,and there is a small mortgage outstanding on the family farm. Personal debts of the

individual familymembers consist of small credit-card balances for Fred, Sally, Sam,and Lilly as well as

an auto loan on Sam’s van. During thecommercial loanaccounting review process, Sally and Lilly discover that Jane has been siphoning off large amounts of corporate money and “cooking the books” to hide her actions.

Janehas written several checks fromthe corporate account and forged both Sally’s and Fred’s signatures. Jane hasmade out allbut one of theforged checks to Don, a local loan shark,in an effort to repay her gambling debts.The check Jane did not deliver to Don was made out to “Cash,”which she slipped into the collection box at church in an effort to absolve her guilt. The embezzlement was so severe that the family fears that Fred’s Miracle Cough Syrupis now on the brink ofbankruptcy.

Meanwhile, Sam’s refusal to enter into an exclusive distribution deal with the local drugstore has enraged Bob,

the owner. Bob has now reverse engineered Fred’s cough syrup recipe and has posted it online in an act of vengeance. As Fred and Sally tearfully recount the events of the past month, you reassure them that you are on the case,and you begin to ponder the legal issues at hand.Specifically, the following critical elements must be addressed:

I.Whatlegal defensesmight Fred and Sally raise with regard to the checks written by Jane to Don?

Why do you believe they will be successfulor unsuccessful?

II.

What

legal

defenses might Fred and Sally raise with regard to the check written by Jane and delivered to the

church?

Why do you believe they will be successfulor unsuccessful?

III.

What,if any,civil claimsdo Fred and Sally have against Jane based on her actions?

Why do you believe they will be successful or unsuccessful?

IV.

Analyzethe forms of bankruptcyavailable to the business in this instance

(assume the business entity is the same form as you chose in Case Study 1).

What form is most appropriate and why?

V.

Analyzethe implications of a potential bankruptcy action on the business assets(assume the business entity is the same form as you chose in Case Study 1). I AM GOING TO SWITCH TO RECOMMENDING USING LLC AS THE RECOMMENDATION

Explain which, if any, are subject to forced sales, liens, or forfeiture.

VI.

Analyzethe implications, if any, of apotential bankruptcy action bythe business on the assets of the individual

family members(assume the business entity is the same form as you chose in Case Study 1).

Explain ifthe assets of business owners are subject to forced sale, liens, or forfeiture.

VII.

What legal recourse does Fred have against Bobfor infringement of intellectual property rights?

Do you believe he will be successful?

Why or why not?

 
Looking for a Similar Assignment? Order now and Get 10% Discount! Use Coupon Code "Newclient"