Bob owned a small orchard that produced a rare type of apple with a distinctive flavor. The orchard had

been in his family for three generations. As a young boy, Bob spent hours in the orchard with his

grandfather, learning how to take care of the trees. Since the family always had plenty of apples, they

developed many recipes using this rare fruit. Bob himself developed a recipe for an apple soda that was

delicious. His friends and family were always asking him to make it for special occasions.

Last weekend, Bob took a batch of his apple soda to his cousin's picnic themed wedding. As usual, the

drink was a big hit.

"Hey Bob, this soda is awesome" said Tom, "we should go into business together to market it - your

apple soda could be the next Coca Cola."

Overhearing that comment, Mark yelled "don't go into business with that donkey, start the business

with me instead."

At that point, the three cousins - Bob, Tom, and Mark - started arguing about who was most likely to

start a successful business. Bob had the recipe and the apple orchard, Tom was a very successful

salesman, and Mark was a great accountant, so each of them had something to offer. They also knew

each other well since they were same age and had grown up in the same small town. In fact, that was

part of the problem. Bob knew both of them too well. Tom had developed his sales skills as a teenager

by getting Mark and Bob to do risky, crazy things that always got them in trouble and often resulted in

injuries. Mark, on the other hand, always worried about doing anything that was even a little bit risky

but still could not manage to say no to Tom. Bob liked them both but knew that working with them

would be a little bit challenging. He also knew that Tom and Mark had not spent a lot of time together

over the last five years because their wives did not like each other.

Bob did like the idea of starting a business to sell the apple soda but there were a few things about it

that really concerned him. First of all, he didn't want to risk his apple orchard. It had been in his family

for such a long time that he could not stand the thought of losing it. Secondly, it was going to require

more money than Bob had in his saving account to get the business set up. He estimated that he would

need about $100,000 to invest in the first year but hoped to at least break even in the second year.

Finally, Bob was worried about having to compete with other soda companies. It seemed like two or

three big companies owned all of the successful brands of drinks.

Bob needs your help! overview of the legal issues that arise based on these circumstances.

After you have fully discussed the issues, give Bob your best advice regarding how he should proceed.

(25 points)