Doody Calls Yall Mel and Sean decided to form a business to clean up dog poop from yards on a monthly subscription basis. They called their business Doody Calls. They agreed to split the costs and profits 50/50. Sean transferred her van to the business, and they repainted it with the business name on all sides. The cost of all other start up equipment was shared evenly by Sean and Mel. They had no written agreement governing their business arrangement. The business took off and soon they had more customers than the two could handle. They approached Joe, an old high school friend, and in lieu of wages, he agreed to handle one third of the Doody Calls customers in exchange for 10% of the profits. Joe had no responsibility to contribute to the costs of the business should expenses exceed revenues. While scooping poop, Sean accidentally let loose a customers rare pedigree dog and it was never recovered. The customer demanded that Sean reimburse him for the value of the dog, $3,000. Sean paid the customer immediately to avoid legal action, and then submitted the cost for inclusion in the business monthly calculation of costs at the end of the month. Mel objected, she said it was Seans fault that the dog was lost, not hers, and that therefore Sean should bear the cost alone. Mel and Sean each received an equal share of the profits at the end of each month. While Mel was doing as much poop pick-up as Sean, she was also handling all of the bookkeeping and business correspondence. Mel asked Sean to pay her an additional administration fee based on the number of hours she performed such additional duties. Sean did not agree to Mels request. Mel is now disillusioned with being in business with Sean and considers calling it quits. She comes to you to find out how the business assets would be split up if she ended the business. She specifically wants half the value of all of the business assets remaining after the business is closed, plus an additional payment to make up for the extra administrative duties she has performed.

1. What form of business enterprise is Doody Calls Service and what is the relationship of Mel, Sean, and Joe to that business?

2. How should the cost of the lost dog be handled in order to comply with Alaska law?

3. What advice will you give Mel with respect to her rights to half of the business remaining assets and extra compensation should the business be terminated?