Question 1 (30 points)

Christine Alexander (CA) sells DIY (do-it-yourself) tattoo kits over the internet as Kiddink ("so easy a child could do it").This business is run as a sole proprietorship.CA advertises on sites aimed at both children and adults and sales have been increasing dramatically lately.

a)Was a sole proprietorship the right choice for this business?

Yes, sole proprietorship was the right choice for this business.

b)Please explain why or why not using the relevant legal rule.

c)If it was not the best choice, what would be the best choice for this business?

d)Please explain your reasoning for this choice using the relevant legal rule.

Question 2 (30 points)

Brandon Jenkins (BJ), the parent of a kindergartner named Sam, finally gave in to his child's whining and ordered a Kiddink kit.Given the name, and the large smiling child on the front of the box, BJ assumed it was a kit for temporary tattoos.It was not.BJ learned this fact thirty minutes after he unwrapped it and handed it to Sam, when Sam returned to the room distraught that he did not have a real picture of Captain Underpants on his tummy and was instead covered with bleeding needle punctures.

BJ is now planning to sue Kiddink.

a)What would be the basis for his suit?

b)Will he succeed?

c)Please explain why or why not using the relevant legal rule.

Question 3 (30 points)

Randy Peterson (RP), an employee of Kiddink, sent an email from his work email account to the Consumer Product Safety Commission, explaining that he was concerned that the business was advertising to children when he did not believe that children should be giving themselves real tattoos.

CA read this email and immediately fired him.

a)Did CA have the right to read this email?

b)Please explain why or why not using the relevant legal rule.

c)Was CA legally allowed to fire RP?

d)Please explain why or why not using the relevant legal rule.

Question 4 (30 points)

Sadly, Christine Alexander (CA) has had to file for chapter 7 bankruptcy (assume she can qualify).She has the following claims:

1.Unsecured loan used for facials and pedicures in the last month (it has been a stressfulmonth) - $4000

2.Back pay to the employees of Kiddink - two employees are each owed $3000 for work in

the last month

3.Alimony - $5000

4.Unsecured loan for fast food eaten in the last month - $2000

Her total nonexempt assets are $12,000 (i.e., the assets she has after all of the state exemptions have been applied, like the two horses, etc.Remember, this is the amount of money the trustee has to work with; assume that all bankruptcy expenses have been paid.I just want to see you analyze the above claims.)

a)In what order (if any) are the claims listed above going to be paid by the bankruptcy trustee?

b)Please explain your reasoning for this order.

c)When she emerges from bankruptcy, what loans or obligations, if any, will CA still have?

d)Please explain your reasoning for this result.

e)How much will each of the claims listed above be paid (using a dollar amount)?

f)Please explain your reasoning for this result.

Question 5 (30 points)

Christine wrote a memoir about her experiences with Kiddink to help her process everything she had gone though.She wrote about how she came up with an idea that she thought would revolutionize the industry, how she started a business to help that idea become a reality, and how the business was the victim of a vindictive employee, who ratted out the business to the federal government.

Christine was distraught to learn that Rolf Dixon (RD), the former head of Drops, a blood analysis company, came out with an extremely similar book two months later.In his book, Rolf wrote about how he came up with an idea that he thought would revolutionize the industry, how he started a business to help that idea become a reality, and how the business was the victim of a vindictive employee, who ratted out the business to the federal government.

She is now suing Rolf for copying her book.

a)What is the legal basis for her suit?

b)Applying the facts of this case to the relevant legal requirements, should Christine win?Please make sure you are explaining why or why not using the facts of this case.