BUS 307 Case Study 1 Guidelines and Rubric
For this case study, craft a professional email, appropriate in format, tone, and content, to send to your clients Fred and Sally, with your preliminary thoughts on the issues within. Your email should illustrate the issues and relevant law, apply the facts, and support your conclusions with regard to each issue. Always remember to be clear, kind, and professional in your communications. Case Study 1 Fred is well known in his town for his homeopathic cough syrup. After years of encouragement, he has decided to take his miracle cough remedy to market as “Fred’s Miracle Cough Syrup.” While his cough syrup is homeopathic, one of the key ingredients causes a severe reaction when taken in conjunction with aspirin. Fred plans to make and bottle his cough syrup in an outbuilding on the family farm. His son, Sam, has been raving to the locals about his father’s cough syrup for years, and the local drug store and grocer have contacted Fred to place orders as a result. Sam also intends to approach several national chains in an effort to secure supply contracts for Fred’s cough syrup. Fred has asked Sam to assist him with deliveries, as Sam has a van. Fred would like Sam to be involved with the business as an employee initially, with the option of making him a partial owner at a later time. Fred and his wife Sally have two children, Sam and Lilly. Both live in cabins on the family farm with their spouses and children. Fred and Sally engage you as their attorney to assist with the formation of the new business, including determining the appropriate business entity type, management issues, product liability issues, and estate planning for both the business and family property. After your initial meeting, you identify and research the following issues. Specifically, the following critical elements must be addressed:
I. Describe the main types of business entities and their defining characteristics. II. Apply product liability law and determine what issues are present. How would you advise your client to mitigate those issues?
III. Apply the elements and characteristics of an agency relationship to Sam’s actions. Does Sam’s involvement prior to the business formation, as well as his anticipated role once the business is formed, create an agency relationship? Why or why not?
IV. Identify potential real property issues based on the location of the business on the family farm. Justify each potential issue. V. Does the manufacture of Fred’s Miracle Cough Syrup on the family farm necessitate a formal transfer of ownership or possessory rights? Defend your
response. VI. Identify potential personal property issues based on the use of Sam’s personal vehicle to deliver the product. Justify each potential issue.
VII. Does the use of Sam’s personal vehicle in the course of business expose Sam or the business to any liability issues? Defend your response. VIII. Identify potential estate planning issues with regard to the business and the family farm. Justify each potential issue.
IX. What estate planning vehicles are available to Fred and Sally should they desire to transfer ownership in the business and family farm, respectively, to Sam and Lilly equally? What are the advantages and disadvantages to each?
X. Applying your analysis of the issues above, which type of business entity do you recommend for Fred’s Miracle Cough Syrup and why?
Rubric Guidelines for Submission: Your “email” should be 1 to 2 pages, double-spaced, use 12-point Times New Roman font, and follow APA 6th edition format for layout and citations.
Critical Elements Exemplary (100%) Proficient (85%) Needs Improvement (55%) Not Evident (0%) Value
Case Study 1: Business Entities
Meets “Proficient” criteria and offers insight into the nuances of each type of business entity in relation to one another
Describes the main types of business entities and their defining characteristics
Describes the main types of business entities, but does not describe their defining characteristics
Does not describe the main types of business entities or their characteristics
10
Case Study 1: Product Liability
Meets “Proficient” criteria and cites specific, applicable rules of law
Applies product liability law to determine issues and recommends mitigating actions
Applies product liability law, but does not recommend mitigating actions
Does not apply product liability law to determine issues
10
Case Study 1: Agency Relationship
Meets “Proficient” criteria and provides a thorough, step-by- step analysis with specific supporting evidence applied to each element of the relevant legal test
Applies elements and characteristics of an agency relationship to actions to determine if an agency relationship was created and provides justification
Applies elements and characteristics of an agency relationship to actions, but does not determine if an agency relationship was created, or justification is not logical
Does not apply elements and characteristics of an agency relationship to actions to determine if an agency relationship was created
10
Case Study 1: Real Property
Meets “Proficient” criteria and cites specific, applicable rules of law
Identifies potential real property issues based on the location of the business on the family farm and provides justification for each
Identifies potential real property issues based on the location of the business on the family farm, but does not provide justification for each
Does not identify potential real property issues
10
Case Study 1: Manufacture
Meets “Proficient” criteria and offers insight into the nuances of real property issues as they pertain to business
Determines if the manufacturing necessitates a formal transfer of ownership or possessory rights and defends response
Determines if the manufacturing necessitates a formal transfer of ownership or possessory rights, but does not defend response
Does not determine if the manufacturing necessitates a formal transfer of ownership or possessory rights
10
Case Study 1: Personal Property
Meets “Proficient” criteria and cites specific, applicable rules of law
Identifies potential personal property issues based on the use of Sam’s personal vehicle to deliver the product and provides justification for each
Identifies potential personal property issues based on the use of Sam’s personal vehicle to deliver the product, but does not provide justification for each
Does not identify potential personal property issues
10
Case Study 1: Liability Issues
Meets “Proficient” criteria and offers insight into the nuances of personal property issues as they pertain to business
Determines if the use of a personal vehicle exposes Sam or the business to any liability issues and defends response
Determines if the use of a personal vehicle exposes Sam or the business to any liability issues, but does not defend response
Does not determine if liability issues are present
10
Case Study 1: Estate Planning
Meets “Proficient” criteria and cites specific, applicable rules of law
Identifies potential estate planning issues and provides justification for each
Identifies potential estate planning issues, but does not provide justification for each
Does not identify potential estate planning issues
10
Case Study 1: Transfer Ownership
Meets “Proficient” criteria and offers insight into the importance of estate planning issues in business
Determines estate planning vehicles available to transfer ownership equally and provides advantages and disadvantages of each
Determines estate planning vehicles available to transfer ownership equally, but does not provide advantages and disadvantages of each
Does not determine estate planning vehicle available
10
Case Study 1: Business Entity
Meets “Proficient” criteria and offers insight, based on research, as to why the chosen type of business entity would be an appropriate choice for Fred’s Miracle Cough Syrup
Applies legal and factual analysis to form a recommendation on an appropriate business entity and provides rationale
Applies legal and factual analysis to form a recommendation on an appropriate business entity, but does not provide rationale
Does not apply legal and factual analysis to form a recommendation
10
