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Kyle took your advice and decided not to spend the money to fight for his claim to KFC.com as the domain name for his new
Kyle took your advice and decided not to spend the money to fight for his claim to "KFC.com" as the domain name for his new product line, Kyle's Flavorful Condiments. Kyle, however, does want to continue the move of his business, Alabama Sunshine, to the next level of operations. His produce marketing efforts in Nauvoo and surrounding areas in Alabama and into Mississippi and Tennessee have proven to be very successful. He now wants to expand to other choice locations in areas that he likes to visit, namely the beach and resort areas along the Gulf Coast around the Orange Beach area of Alabama. Kyle has found a possible location to construct a new store in Fair Hope, AL. The property is owned by Siri. Since Kyle's business is successful and people throughout Alabama and abutting States know of Kyle and of Alabama Sunshine, Kyle hires Alexa to contact Siri, negotiate a price, and, if possible, buy Siri's property for him. Concerned that, if Siri knows that he (Kyle) wants the location, the price will increase, Kyle instructs Alexa to not tell Siri that she is working for Kyle. During negotiations with Siri, Alexa realizes that Siri's property is a good deal, an exceptionally good deal, and buys the property for herself, not Kyle as agreed. Kyle is angry, very angry, and wants to know what he can do. Respecting your knowledge of business law, Kyle comes to you. What are the issues that you will need to address and what is the controlling law for each issue? During the conversation, Kyle mentions that Alabama Sunshine is operated as an informal partnership between himself and his older brother, Jimmy, who has pretty much retired from management of the business. He asks you about the advantages and disadvantages of a partnership and the other small business organizations and whether he should change the business to some other business structure. If so, which one would be the most advantageous? In passing he notes that the temporary worker, Eduard, he refused to hire back during the peak season (remember WA1) has now filed an employment discrimination (age and national origin) charge against him personally and against Alabama Sunshine and Kyle wonders what the procedure is for such charges and what he must do. The issues were: the nature of Alexa's employment status (employee vs. independent contractor); creation of agency between Kyle and Alexa (express vs. implied); partially vs. undisclosed principal (facts don't state which); duties owed by agent to principal (PLANO); relationship between principal and agent (fiduciary); remedy for duties that Alexa breached (loyalty and obedience, if not others); Statute of Frauds and equal dignities rule issues (transfer of interest in land, authority of agent, exceptions); remedy as to transfer of interest in land from Scott to Alexa (specific performance---Kyle wants land, not money damages); and minor issues such as, necessity for real estate license and jurisdiction and venue (suit between Kyle and Alexa for breach of duty of loyalty and for specific performance as to land). As to the business organization, the issues are limitation of liability, ability to raise capital, duration, tax considerations, and flexibility of management, including dissolution. If Kyle's cousin, Jerry, withdraws, the partnership will have to be reorganized and tender to the cousin his share of business as per the partnership agreement. Either family corporation, sub-chapter S corporation, or LLC is the best option based on facts given. The employment issue relates to Title VII of Civil Rights Act of 1964, charge (employment discrimination based on gender and national origin, among others) is handled by EEOC after prima facie case (member of the protected class) is established. Kyle must respond to charge (legitimate business need). Delete comment: The issues were: the nature of Alexa's employment status (employee vs. independent contractor); creation of agency between Kyle and Alexa (express vs. implied); partially vs. undisclosed principal (facts don't state which); duties owed by agent to principal (PLANO); relationship between principal and agent (fiduciary); remedy for duties that Alexa breached (loyalty and obedience, if not others); Statute of Frauds and equal dignities rule issues (transfer of interest in land, authority of agent, exceptions); remedy as to transfer of interest in land from Scott to Alexa (specific performance---Kyle wants land, not money damages); and minor issues such as, necessity for real estate license and jurisdiction and venue (suit between Kyle and Alexa for breach of duty of loyalty and for specific performance as to land). As to the business organization, the issues are limitation of liability, ability to raise capital, duration, tax considerations, and flexibility of management, including dissolution. If Kyle's cousin, Jerry, withdraws, the partnership will have to be reorganized and tender to the cousin his share of business as per the partnership agreement. Either family corporation, sub-chapter S corporation, or LLC is the best option based on facts given. The employment issue relates to Title VII of Civil Rights Act of 1964, charge (employment discrimination based on gender and national origin, among others) is handled by EEOC after prima facie case (member of the protected class) is established. Kyle must respond to charge (legitimate business need)
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