You are a consultant for a client who wholly owns a business called Bistro, a popular caf and bar located in historic downtown, Arizona. Your client also inherited a significant sum of money that is invested in several business entities, including publicly traded companies. Over the course of the fall season (into the winter), your client has had several questions. Some of the questions relate to your client as the owner of the caf. Others relate to other business issues the client is experiencing. Those different issues are found on the next page

For each scenario, briefly address the following:

1. What laws would you use in assessing the situation?
2. What is your sense of the "right" thing to do in the situation?
3. What steps should the client take at this point?
4. What are the risks (if any) of failing to act?

1. Aug 25:On the way to work, your client heard a story about a type of dried mushroom known as Kikurage. Your client heard that the government is considering putting some restrictions on the purchase and use of the mushrooms. Your client is concerned because one of the signature dishes at the caf is a kikurage and pepper omelet and your client does not want to have to remove that from the menu. But the news story made it sound like the availability may go way down and the cost may go way up. Your client has asked you to investigate the potential government action and what the client might be able to do.
2. Sep 1:Your client owns several shares of stock in a privately held company called Flag Beauty Shop, a local close corporation that makes and sells lotions, soaps, and other products with unique scents, flavors, etc. This is a very popular type of business. Your client is afraid that some bigger company is going to come in and try to convince the other owners to sell their shares to it so it can take over. Your client is interested in some strategies to discourage such activity.
3. Sep 8:Your client is interested in selling a small business that has been in the family for many years. Your client is the only owner of this private corporation. The business is a small poultry processing plant. Your client has been in contact with a large, national corporation that processes poultry and other meat for sale in grocery stores. The larger company would like to acquire your client's business, but your client has heard that there is some process of approvals that might have to happen before the client can just accept cash and give away the assets.
4. Sep 15:Bistro405 is so popular in town that the client would like to open a second location across town. But the client does not want to take on significant personal debt to do this. Instead, the client has already incorporated the caf and would like to issue new stock to fund the new location. The client knows several good friends interested in investing, including many in other states. The client is interested in how to go about issuing the shares.
5. Sep 22: Your client has been invited to serve on the board of directors of a company owned by a good friend of his. Your client knows that at one point the other company had some trouble with misstated financial statements. The client asked about it and the friend said that it was all taken care of. Your friend would like to serve in this capacity but has some concerns about that issue as well as the client's qualifications to be a board member. Discuss a board member's duties and whether the client has fulfilled them regarding the financial statement issue.