Mary hears about a great business opportunity to purchase a dog care franchise. The problem is that she loves dogs, but doesnt have the money to make the investment. She talks to her uncle Frank, who is also her doctor, about investing in the business at a family reunion. The two talk about it and Mary tells Frank that if he will invest $100,000.00 in the venture, she will ensure that he gets his money back in five years, plus 5% interest. She also says she will let him keep a 10% interest in the business as a minority owner.

The two sit down around a camp fire and throw back a few beers while they talk about the business opportunity. Uncle Frank tells Mary hes interested, but that he wants 8% interest and 20% ownership. He also asks her how the lump her prescribed medication for last week is doing. Mary says her lump is still there, but hey, lets open the dog care facility!

The next week, Uncle Frank, during a checkup on Marys lump, gives her a $100,000.00 check. Mary says thanks and leaves the office. She uses the check to purchase a business location and to secure the franchise. She quickly learns that she doesnt have enough money to purchase all the equipment she will need. After going back to Uncle Frank, he tells her he is tapped out. Mary goes to her best friend, Betsy and secures a loan of $25,000.00. Betsy loans the money, but requires a note and deed of trust to the business location. Mary doesnt say anthing, but takes the check and deposits it.

Mary opens the business and customers drop in. Tom brings his dog in and Mary discusses different grooming options. Tom doesnt respond, but simply says, Ill pick fluffy up at 5pm tomorrow. When Tom picks fluffy up, he is surprised to receive a bill for $250.00. He says theres no way a shampoo cost that much. Mary explains that she clipped his nails, treated him for fleas and boarded Fluffy overnight. Tom says I only wanted a shampoo. But Mary had explained all the options and Tom simply left Fluffy at the store. When Tom tries to take Fluffy, a fight breaks out and Mary pulls a gun and says, You will get Fluffy after you pay or I will shoot her! Tom leaves and calls the cops.

After several more incidents like Toms, word gets out that you cant do business with Mary-shes crazy. The business starts to faulter and it is clear that it wont survive. Uncle Frank is worried about his $100,000.00 investment and Betsy is worried about her $25,000.00. Betsy sees Tom for a routine checkup and learns about his investment. Together, then decide to take control of the situation. They go together and tell Mary that she must pay them there money today, or else they will take her to court.

When Mary cant pay, Tom and Betsy decide they can make the business work with new management, but Mary refuses to let go of control. Tom and Betsy ask you, as their friend, what can we do?

Discuss the legal issues raised