You work in the Legal/Business Affairs department of Atco, Inc., a New York Corporation. You have been informed of the following four matters and asked by your boss, Sam Burnett, Atco's president, to send him a memorandum advising him of all possible legal implications, risks, matters, etc. relating to these four matters.

1.The company has been looking for a new west coast jumbo warehouse for some time. The company's president, Sam Burnett, had a telephone conversation with the president of Epson, Inc., a California company. In that conversation, Burnett induced him to give Atco a 4-month firm offer for Atco to purchase Epson's Los Angeles warehouse, at a very good price. To boost the price of Atco stock, Burnett plans to publish a broadly circulated national press release informing everyone of this development.

2.Atco is seeking to sell two large industrial machines in its factory for the total price of $100,000. A potential buyer is visiting next week to inspect the machines. As Burnett knows, one of the machines has faulty electrical wiring which could at any time burst into a serious fire. This condition cannot be discovered by a cursory inspection of the machines. If asked about the wiring, Burnett will tell the truth and likely reduce the purchase price. However, if he is not asked specifically about the wiring, Burnett does not plan to mention it.

3.Atco wants to purchase a very valuable painting which will sell for $1 - 1.4 Million, to display in its New York headquarters. Burnett is not sure if the painting is owned by Bill Taggart or his emancipated 17-year-old daughter, Emily Taggart. Burnett says he does not care who owns it, he intends to buy it.

4.Last week, Continuing Cancer Research, Inc. ("CCR"), a NY based charitable institution, ran a telethon to raise money for its cancer research work. Burnett, on behalf of Atco, called in a pledge of $100,000. Burnett now has second thoughts and is planning not to honor his charitable subscription and not make the $100,000 donation. He wants to know if this can cause any problems for Atco.

Write a comprehensive memorandum to Sam Burnett advising him as he requested. Keep in mind that he is not a lawyer and not familiar with legal terminology. So be clear, concise, and accurate in your writing. Use the following form:

MEMORANDUM

To:

From:

Date:

Subject:

Write in the first person - example, "I would advise you to ...", "In my opinion, the company should...".