Specifically, the following critical elements must be addressed:
- Describe the main types of business entities and their defining characteristics.
- Apply product liability law and determine what issues are present. How would you advise your client to mitigate those issues?
- Apply the elements and characteristics of an agency relationship to Sams actions. Does Sams involvement prior to the business formation, as well as his anticipated role once the business is formed, create an agency relationship? Why or why not?
- Identify potential real property issues based on the location of the business on the family farm. Justify each potential issue.
- Does the manufacture of Freds Miracle Cough Syrup on the family farm necessitate a formal transfer of ownership or possessory rights? Defend your
response. - Identify potential personal property issues based on the use of Sams personal vehicle to deliver the product. Justify each potential issue.
- Does the use of Sams personal vehicle in the course of business expose Sam or the business to any liability issues? Defend your response.
- Identify potential estate planning issues with regard to the business and the family farm. Justify each potential issue.
- What estate planning vehicles are available to Fred and Sally should they desire to transfer ownership in the business and family farm, respectively, to Sam and Lilly equally? What are the advantages and disadvantages to each?
- Applying your analysis of the issues above, which type of business entity do you recommend for Freds Miracle Cough Syrup and why?
