Read the following scenarios and answer the questions.

1) You are a purchasing manager for a retailer of high-end kitchen products. You know that Malinox, Inc. is the best manufacturer of kitchen knives in the industry. Malinox brand kitchen knives would be an ideal complement to your store's inventory, but you know that Malinox is selective with whom they sell their products. Consider what is legally necessary to make a valid offer to Malinox, and also consider the advantages to making the offer as specific as possible. Also evaluate any disadvantages to making an offer that is too specific.

2) You are a manager employed by a construction company that builds small venues for rock concerts, sporting events, and other activities. RP Properties is negotiating an agreement with your company to build a $100 million stadium near downtown. Among many other terms, the contract states that the project should be completed by January 1 of next year. The contract also states that your company will be obligated to pay $20,000 for each day of delay in construction after January 1. Although you know the contract will be profitable for your company, evaluate the risks of accepting such a contract given this contract clause.

3) You are a recently graduated MBA student and you see an advertisement in a newspaper for a new set of living room furniture (couch, loveseat, coffee table, 2 end tables and 2 lamps) for $1,000 from Jackie's Furniture, a national retailer of furniture. Being busy with your new job, you send a fax to Jackie's stating, "I saw the ad in the paper for the living room set. I will buy that set as advertised, delivery included in the stated price and with delivery to take place within two weeks from the date on this offer." A sales representative writes back and states, "On behalf of Jackie's Furniture, we are pleased that you are interested in the living room set mentioned and are happy to sell you the set for $1000.00. The additional delivery charges will be $100 and this particular furniture set is on back order so delivery will occur within 30 days." When Jackie's fails to deliver within two weeks, you contact the company to explain why the company is in breach of contract. State your argument.

4) You work as a financial consultant for a major national company. One of your clients, Kay, comes in to talk to you about a new idea. She is interested in quitting her management job at a large corporation where she has long hours and a lot of stress. She would like to take a position with a much smaller not-for-profit company, focusing on an issue she has been passionate about for years. Unfortunately, this not-for-profit cannot pay her even half of what she makes now. She has figured out that if she can get rid of her $40,000 in student loans (which she can currently pay monthly but could not if she took the nonprofit job), she could afford to take the job and maintain a decent lifestyle. She has come to you to discuss declaring bankruptcy to get rid of her student loans so she can change jobs. Analyze her ability to do it.

5) You are an experienced small business owner who would like to become a franchisee of Quick Burger, a nationwide franchise of fast food restaurants. There are some Quick Burger restaurants in your area, but not so many that another franchise would be unprofitable. You are interested in maintaining as much day-to-day control in your potential franchise operations as possible. Before joining a franchise, you want to make sure that the essential terms are clear to both parties. Explain what issues you would need to resolve before entering into a franchise contract with Quick Burger.

6) You are an expert in the field of advanced laser technology. You believe there is a profitable, though risky, commercial market opportunity for a new and more effective photonic crystal laser. The investment could result in a financial success, but could also result in no new innovations even after significant research costs. It requires a number of experts to coordinate in order to develop the new lasers. You invite eleven people that have never worked together to develop the new technology. You want to form a limited liability company in order to protect the interests of all participants. Evaluate the possible management structures and key terms of any operating agreement that should be considered in order to form an LLC.