Both Fred's family and the business have rebounded from their prior issues. Jane sought counseling for her gambling issues and has worked hard to mend her relationships with the family. Before cashing the forged checks from Jane, Don was struck by lightning and experienced spiritual enlightenment. He willingly returned the checks to Fred and Sally and promptly joined the Peace Corps. Likewise, when the church found out the donated check was a forgery, it was immediately returned. Bob's wife (also Sally's best friend) found out about Bob's online sabotage and promptly remedied the situation. Once Fred's Miracle Cough Syrup was back on track, the company's growth was exponential. Featured on a widely viewed talk show starring a prominent doctor, online orders and demands from big-box chains nationwide skyrocketed. Fred and Sally have been told that now would be an ideal time to take Fred's Miracle Cough Syrup public. The only distressing issue at hand involves Tammy, a local girl working as a delivery girl for the company. She applied for Jane's former job as a bookkeeper. Fred and Sally hired Ted, an experienced accountant, instead, and Tammy has filed a claim of sex discrimination against the company and Fred personally. Fred and Sally are seeking your advice regarding Tammy and the possibility of taking the company public.

I. Evaluate three current or potential legal and/or regulatory issues apparent in this fact pattern that might impact a public offering.

II. Determine whether Fred's Miracle Cough Syrup complies with government regulations involving public offerings by analyzing relevant laws and using the appropriate legal test and facts given.

III. Support your conclusions and provide recommendations to improve compliance and strategies for corporate growth.