Fred’s Miracle Cough Syrups
Instructions:
1) Read attached Case Study 1 rubric and initial Case Study 1 paper for back up information on this assignment.
2) Read attached Case Study 2 rubric for this assignment requirements, back up information and seven critical elements to be addressed in this Case Study 2 assignment.
Solution.
Fred’s Miracle Cough Syrups
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Subject: Fred’s Miracle Cough Syrups
Thank you for giving another opportunity to give my expert advice concerning the legal issues your firm faces. The first legal defense that you may raise with regards concerning checks written by Jane to Don is the forging of signatures by Jane. The second defense that you might raise in the case will be against Jane’s practice of money laundering through using the firm’s money to offset gambling debts (Keenan & Riches, 2007). The third defense with regard to the written checks to Don is the intentional misrepresentation of financial figures in the accounting books of the company. The three defenses will be successful since they are a breach of the contract law that Jane as an employed agreed.
You can raise some defenses to with regards to the written checks by Jane to the church. Jane still had to forge the signatures in drafting the check to the church. Despite her contributing the check to the church, a charity organization, it does not make her actions lawful. The decision to submit firm’s authority did not authorize checks from the organization to church (MacIntyre, 2008). A defense against the act of misrepresenting the financial data in the company’s books of accounting cam qualifies in this issue. I believe these defenses will be successful due to the availability of evidence to substantiate the claims.
You have some claims that you can raise against the actions of Jane. You can have defense against Jane’s act of impersonifying the company’s owners. Jane acted as the company’s agent despite her lacking the authority to do so. The company should also raise a civil claim against Jane for misrepresenting the financial data of the accounting books. She did so to cover up for her mistakes.
Three forms of bankruptcy can be applied to organizations in such situations when they are facing financial stress. These forms depend on the form of your business. The forms of the business are sole proprietorships, corporations, and partnerships (Keenan & Riches, 2007). Since the company in concern is a limited liability company, it would be best if filed under the corporations for bankruptcy. It would be best if the business would take a business reorganization bankruptcy. This form of bankruptcy is the best since the company intends to continue its operations in the future. The owners of the firm will have to be the trustee of the company.
In the situation of a potential bankruptcy action plan on the business assets, the company will be faced by some implications. The business assets will be taken as security to offset the company’s debt. The family farm in which mortgage payment is done under the company’s name will have to be seized. Sam’s van will have to be seized since he acquired loan from the firm to purchase it. Lastly, you can have a legal recourse against Bob for infringement of intellectual property rights. Bob’s action of reverse engineering the product’s recipe and posting it online is a breach of the intellectual property rights (MacIntyre, 2008). You will be successful in this claim since the product was patented.
Best Regards,
Rebecca McGovern
McGovern and Associates, PLLC
References
Keenan, D. & Riches, S. (2007). Business law. Harlow: Pearson Longman.
MacIntyre, E. (2008). Business law. Harlow, England: Pearson Longman.