Would the parents and their investment have in the business

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Reference no: EM132177185

Case 1

1. For Halloween, Ricky Ripoff had a Marvel themed party at his home. Guests wore Marvel themed costumes consisting of colorful leotards made to look like the characters from the movies, Black Panther, Spiderman and the Avenger. Ripoff's party was such a hit that he began having Marvel parties at his home every last Saturday of the month.

Ripoff charged everyone a nominal fee to pay for the food, drinks and entertainment. The remaining funds from the door charge was put into a pot and awarded to the top costume wearer of the night. Ripoff's reputation for throwing lavish parties grew in the city. Ripoff, a little known party planner prior to having his parties, started receiving several new reservations for his services.

In addition, his reputation among the ladies grew for which he was very pleased Sleazy G, a local club owner, attended one of Ripoff's parties and saw the success of the Marvel parties. Sleazy immediately changed the name of his club to Club Avengers. He has the women wear see through colored striped tights, similar to those worn in the comics and movies. The male bartenders and bouncers were also dressed in see through Black Panther tights or revealing Hulk shorts. The club which was failing financially, increased its customer base and is now a thriving business.

The son of Stan Lee, the inventor of Marvel comics, happened to be out with his buddies one night when they stopped by one of Ripoff's parties. He recognized the guests as wearing designs similar to the characters in his father's Marvel comics. He next went to the Club Avengers and was shocked to see the workers wearing see through Avenger costumes.

Stan Lee's son immediately brought suit against Ripoff and Sleazy asserting copyright infringement. The son, on behalf of Stan Lee's estate, seeks monetary damages and an injunction against both parties to stop using the costumes at Ripoff's parties and in Club Avengers.

What will the court rule in the matters of Estate of Stan Lee v. Ripoff and Estate of Stan Lee v. Sleazy?

Case 2

2. Let's assume that the Judge in the Club Avengers case ordered the club owner to stop using the Marvels costumes. Prior to telling the workers that they had to stop wearing the costumes, Foxy, a hostess at the club entered into negotiations with one of the club's customers, Stanley Stalker.

Stalker a frequent costumer at the club, often sells outfits to the workers at the club. Although he was never involved with the workers' purchase of his workers' outfits, Sleazy did know that the some of the girls did purchase their outfits from Stalker. He never objected to Stalker's sale of the costumes in the club.

On Black Friday, Stalker approached Foxy and offered to sell her 500 Avenger outfits of various sizes for the workers at the club. Sleazy, was not present at the club. Foxy realizing that Stalker's prices for the costumes were very reasonable, and not wanting to miss out on such a good deal, agreed to purchase the 500 Avenger outfits for $3000 on behalf of Club Avenger.

The workers at the club loved the free outfits and began wearing them immediately. Several days later Stalker showed up at the club and presented Sleazy with a bill for the costumes for $3000. Sleazy refused to pay the bill asserting that he did not purchase any costumes or give anyone permission to purchase the outfits on his behalf.

Stalker sues Club Avengers for breach of contract and damages of $3000. How will the court rule in the matter of Stalker v. Club Avenger?

Case 3

3. Kevin and Carlos are brothers who want to start a horse-riding lessons business. They both have considerable experience working with horses, and both want to be involved in the business, including daily training of horses. Their parents Mr. and Mrs. Thomas, want to help their sons by investing $50,000 into the business, however, they do not want any involvement in the day to day operations of the business.

The brothers have spoken to an insurance agent about getting insurance to cover the potential liabilities, but they were told that they can't get insurance to cover this type of high-risk business (because of the potential for personal injury). They come to your firm seeking advice about forming their business; they are particularly concerned about their potential liabilities, especially to any students that ride the horses.

What business form(s) would you recommend to your supervising attorney for this business? Why? What are the advantages and disadvantages of this business form? Explain what protections this business form would offer them from potential liabilities. Finally, what role, if any, would the parents and their investment have in the business.

Case 4

4. After answering the question above, let us assume that one day while giving a lesson, a horse throws a child off the horse causing her severe injuries. Additionally, let's assume the brothers entered into a partnership agreement for the company, K and C Horse Riding Lessons.

The child's parents sued K and C Horse Riding Lessons and were awarded a judgment against them for $100,000. In addition to this judgment, the company has several other creditors which together demand another $50,000 from the company. The creditors have threatened foreclosure on both brothers and their parent's homes and cars to satisfy the judgment and other debts. The brothers and their parents come to you seeking your advice on what options they have:

1. Keep their personal homes and property (including that of the parents) from being taken by the creditors.

2. Stop the creditors from harassing their employees and managers, and

3. Keep the business open.

Case 5

5. Latoya Williams, a light-skinned African-American woman whose hair was dyed blond, applied for a position as a housekeeper at the Anchor Court Hotel in Miami. The Executive Housekeeper, an African-American woman herself, informed Williams during the interview that her hair color would need to be changed because the hotel had a policy against "extreme hair styles" and that Latoya "should be proud to be black rather than being a white wannabee."

Latoya replied that she would not change her hair color "just to obtain this or any other job." Latoya was denied the job with the Anchor Court Hotel, and came to you shortly thereafter seeking advice on the strength of a claim against the Anchor Court Hotel. Advise her.

Case 6

6. A Florida State University study found that the most overweight workers in the American workplace had thirteen times more lost workdays due to work-related injuries than fit workers and that the medical claims for these injuries were seven times more costly than those of their fit co-workers.

Shortly after publication of this study, a boutique clothing store in fitnessconscious Boca Raton, Florida, adopted a policy that any applicant whose BMI (body mass index) exceeded the ideal weight for persons of their height, weight, and gender by 20% would not be hired. The policy provided further that any employee who subsequently exceeded this weight benchmark would be discharged. Jackie Collins, a six year employee of Sunshine Fashions, was terminated from her job after a recent weigh-in session, required of all employees, showed her to exceed the ideal weight limit. Would Jackie have a legitimate claim to get her job back? Please advise.

Case 7

7. Your client, Pimp Daddy, is the parent of a successful high school football player, Buddy Balls-Alot. Several agents have contacted Daddy about representing Buddy. Sly Slickster, a prominent sports agent, meets with Buddy and Daddy. Slickster offers Daddy a new house and buys Buddy a brand new BMW as enticement to get Buddy to forego college and enter the NBA draft.

Find out whether federal law regulates the activities of sports agents seeking to represent student athletes. Could Slickster be held responsible for violating any statute? And if so, what penalties/fines may he face, if any?

Reference no: EM132177185

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