Business Law

1. Many household services professionals such as carpenters, plumbers, and electricians do business as sole proprietors. If they make a promise to their customers that their work, not the products themselves, will be free from defects for a certain period of time, i.e. a warranty, and then subsequently sell their business assets to another individual, is the buyer bound by the promises made by the seller? Why or why not?

2. John approaches his friend Kevin and offers Kevin 50 percent of the profits from his new online venture if Kevin designs the website for the venture. Kevin says nothing, and later that night begins work on the website, which he then sends to John for his approval. Have John and Kevin formed a general partnership? Why or why not?

3. Take a look at some of the brands and businesses with which you are most familiar. How many of them do business as an LLC?  Why do you think these companies choose to organize as an LLC?

4. Henry Ford, (Ford Motor Company), Ray Croc (McDonald’s), and Levi Strauss (Levi’s) were all entrepreneurs who decided to incorporate their businesses and in doing so created long-lasting legacies that outlived them. Why do you think these entrepreneurs were motivated to incorporate when incorporation meant giving up control of their companies?

5. Discuss in detail the following learning outcomes:

• Identify and describe the various forms of business organization; and

• Discuss the advantages and disadvantages of each type of business organization

Your response should be typed, double-spaced in standard-sized format (8.5" x 11") with 1" margins on all sides. You should use a clear font that is highly readable. APA recommends using 12 pt. Times New Roman font. Citations should be in APA format.