BMGT 380 Business Law 1

  
Submit to Assignment Folder.

Purpose: The purpose of this project is to reflect on, analyze and apply tort law, product liability law, agency and contract law, and their potential risks and liabilities in a business. The project requires you to identify and analyze legal issues and to make recommendations.
You will also develop skills in critical thinking to create an in-depth comprehensive analysis.
The project relates to the concepts covered in weeks 1-7.  You should refer to assigned materials in earlier weeks of the course, including Instructor Notes.
This project relates to the following course outcomes:
· recommend appropriate actions in the business environment based on an understanding of sources of law, substantive legal concepts, legal process and procedure, and available remedies
· analyze contractual rights, obligations, liabilities, and remedies in the business environment
· analyze tort rights, obligations, liabilities, and remedies in the business environment 
Background:  The GC owners are meeting with TLG in final consultations before GC opens business operations.  The purpose of these final meetings is to identify the:
· areas of business law presenting the greatest potential risk and liabilities for GC; and
· areas of business operations vulnerable to potential risks and liabilities for which GC should seek legal counsel.
Winnie and Ralph have asked you to provide a report that presents your reflections and recommendations based on your research and analysis during the past seven weeks of TLG’s consultation with the GC owners.   
Instructions
The report will have two (2) parts.
Part I.  Risks and Liabilities
A.  Analyze and discuss two (2) areas of business law that present the greatest potential risks and liabilities for the GC business, from among these areas:
· Negligence related to any business operations
· Negligence related specifically to premises liability
· Strict product liability related to the use of EPI products for GC services
· Strict product liability related specifically to the resale of EPI products
· Contracts with employees
· Contracts for the sale of goods with clients
· Agency law and contracts with any GC agents
For EACH of the two (2) areas of the law selected from the above list, you must:
(1).  Provide a background explanation of the area of law, e.g., negligence, contracts for the sale of goods, etc. (be detailed and specific so any reader can understand the meaning of the specific area of law)
(2).  Analyze and explain the specific potential risks and liabilities presented by the area of law and why and how each area of law creates vulnerability for GC
(3).  Provide a specific example of why and how the potential risks and liabilities could arise for each area of law for the GC business
Minimum of 3 paragraphs for EACH of the two areas of risks and liabilities you choose to discuss (total of 6 paragraphs, minimum)
Citations required
Part II.  Legal Counsel
During the past eight weeks, we have discussed and emphasized the importance of the GC owners seeking business advice from TLG and the importance of GC –  and every business –  seeking legal counsel from an attorney for various aspects of business operations.  
In Part II, you are to reflect on your experience in consulting with the GC owners, your research and analysis, and make the following recommendations.  
A.  Evaluate and explain why you recommend that the GC owners seek legal counsel with an attorney for any  – or all – aspects of its business operations, i.e., contract writing, procedures to protect against negligence risks, recruitment policies, etc. 
· Explain and support the rationale for your recommendation specifically, in detail and comprehensively, using examples, personal experience(s), etc. 
· Consider specific areas of business operations for which it is particularly important to seek legal counsel
Note:  There is no single correct answer; the detailed, specific rationale and support for your recommendation is most important.  
It is not necessary to cite to resources in Part II for your personal opinion, but you must include a citation each time you do use information from a specific resource (i.e., from assigned course materials) to support your conclusions.  
Minimum of 3 paragraphs
Format
Report
TO:  Winnie James, Ralph Anders
FROM: (your name)
RE:      GC risks and liabilities
Part I. Risks and Liabilities
A.  Business risk #1
(1)
(2)
(3)
A.  Business risk #2
(1)
(2)
(3)
Part II.  Legal Counsel
______________________
Tips for Formatting and Structuring Analysis:
· Write in complete sentences in paragraph format.
· Use in-text citations citing to relevant assignment materials.     
· Double space; 12-point Arial or Times Roman font.
· Introductory Sentence:  Begin with an introductory sentence or very brief paragraph that states your conclusion to the questions asked.  
· Concluding Sentence:  End the discussion with a concluding sentence or a very brief paragraph that summarizes your conclusion/what you discussed.
· Support Arguments and Positions:   Please refer to the module in Content, “How to Support Arguments and Positions”. 
Review the Project Memorandum
Thoroughly read the project to ensure all required elements are present. 
Review the grading rubric to ensure that you gain the most points possible for this assignment.
Proofread for spelling and grammatical issues. 
Use the spell and grammar check in Word.

This information is back ground information: 
Background Facts You Need To Know: WEEK 1
TLG has a new client, Clean-n-Shine (Clean), a commercial cleaning company incorporated and located in Maryland, but doing business in all Mid-Atlantic states. Clean uses its own line of cleaning products and also sells its products to other businesses via the internet.
Recently, the Delaware legislature enacted a law banning all sales and importation, until further notice, of Clean’s Shine It floor cleaner in Delaware.  It was discovered that one of the ingredients in Shine It, derived from corn, is contaminated and causes a quick-growing mold to spread on surfaces to which it is applied. The mold can be toxic to humans and can cause damage to floors.
Clean wants to expand its product line to sell Shine-It in Delaware.  If Clean can sell Shine-it in Delaware, it will increase its income and profits.  Clean, therefore, wants to challenge the new law as unconstitutional, and it has consulted TLG for advice. 
Determining jurisdiction in the courts can be confusing and complicated, but it is an important legal doctrine that businesses cannot ignore.  Jurisdiction can affect business operations and determine business decisions, such as where the business is located and where and how to advertise and market the business.  Where there are questions about possible jurisdiction in the courts, it is advisable for businesses to consult an attorney.  
TLG’s client, Clean, is facing other litigation and needs advice.  
Clean is located in Maryland, but it advertises aggressively in all Mid-Atlantic States of Maryland, Delaware, Pennsylvania, West Virginia, and Virginia via the internet, social media, television, and mailings.
Recently Clean contracted with ABC Corporation (ABC), incorporated in Virginia, to clean ABC’s offices in Richmond, Virginia. ABC paid for the cleaning, but later was dissatisfied with the service and sued Clean in Virginia to recover the costs of the cleaning.  The Virginia state court ruled that it had personal jurisdiction to hear the case.
Background:  WEEK 2
With some understanding of the legal system, the GC owners can now shift their focus to examining specific areas of law that create potential risks and liabilities for their business.   The group knows from their business experience, that businesses face serious and costly risks and legal liabilities stemming from tort law.  
Unintentional harm resulting from accidents, such as negligence, can result in costly litigation.  For example, Madison’s roofing business was sued by a client who was injured when one of Madison’s roofing employees accidentally dropped a ladder on the client’s leg.  
The GC owners are concerned about the possibility of accidents resulting in injuries to their employees that could occur during the cleaning of GC clients’ property.  
Winnie and Ralph have given you the responsibility of analyzing and summarizing potential negligence claims and liability that GC might face in its business operations. You decide to analyze a hypothetical fact scenario to present to the GC owners to help explain GC’s potential negligence liability for accidents occurring on clients’ property during cleaning.  The analysis will be presented at the next meeting with GC owners and TLG.  Your analysis will address only the tort of negligence. 
Background Facts You Need To Know:  Jack, a GC cleaning employee, was assigned to clean Client A’s office building.  Jack’s first task was to vacuum the floors in a wide hallway.  Jack plugged GC’s commercial vacuum cleaner into the hallway outlet with an extra-long electrical cord and began vacuuming.  Before beginning vacuuming, Jack checked to ensure that the hallway was clear of obstacles and people walking.  After checking the hallway, he placed the cord to the side of the hallway out of the path of his pushing the vacuum.  After vacuuming for a few minutes, Jack stepped to the side to turn the vacuum and tripped over two boxes that had been placed in the hallway by Client A’s employee since Jack began vacuuming.  Jack did not know the boxes had been placed in the hallway.
Jack fell and broke his ankle and was taken to the hospital ER via ambulance.  A cast was applied after it was determined the ankle did not need surgery.  Jack missed three weeks of work because of the injury. 
Background Facts You Need To Know: WEEK 3 
TLG has scheduled another meeting with the GC owners to further discuss the risks and liabilities of tort law.  This meeting will focus specifically and only on strict product liability.
Winnie and Ralph asked you to participate in the GC meeting and to be prepared to discuss specific strict product liability risks related to GC’s use and resale of EPI cleaning products. 
Instructions
Report You Need To Prepare: Write a summary report addressing the following questions to use as a basis for discussion in the GC meeting with TLG and to educate GC owners about potential risks and liabilities under product liability law.  Your report must focus only on product liability law.
A.  Identify and explain the possible liabilities claims (EXCEPT omit warranty liabilities) GC could face under product liability law for reselling EPI cleaning products directly to customers from its public place of business.  
B.  Recommend specific actions that GC could take to reduce its liabilities under product liability law for reselling EPI cleaning products
Background:  Week 4
Contracts are essential for business, and will be an integral part of GC operations, so the owners now want to focus on contract law.   Each of the owners has experience with contracts in their own businesses, and appreciate the probable risks and liabilities associated with contracts.   They also know that to avoid possible disputes with employees and clients, contracts should be comprehensive, clear, and specific.
The GC owners know that there are various types of contract agreements relevant to their business.  GC will have individual contracts with employees, independent contractors, and other agents who will represent the company.  Also, GC will engage in sales contracts with other businesses, consumers, and clients.  
To reduce disputes and risks and liabilities associated with contracts, the owners want all contracts to be written, with specific, complete, and clear terms.  Contracts must define the rights and responsibilities of the parties.  Also, since employees and/or independent contractors will be performing cleaning services on clients’ properties, these contracts should require bonding for all employees.
You, Winnie, and Ralph presented draft contracts for GC employees, including different contracts for cleaners, office managers, marketing specialists, sales representatives, and IT employees. 
The GC owners reviewed the drafts and have some questions about the contracts.
Background Facts You Need to Know:  At Winnie’s and Ralph’s request, it is your responsibility to research an provide answers to the GC owners’ questions. As an example, Winnie, Ralph, the GC owners, and you have determined that GC’s contract with its cleaner- employees will include the following terms and conditions:
· specific duties to be performed by cleaner-employee
· salary for cleaner-employee
· work hours
· terms of payment for overtime or holiday work, if any
· sick leave
· vacation leave 
· training requirements for cleaner-employee
· length of contract
· bonding for cleaner-employee 
· periodic performance evaluation and how it will be conducted
· termination of the contract, i.e., a notice of termination, etc. 
Background:  Week 5
The GC owners have questions and need clarification about several contract concepts and issues related to their new business.  Specifically, they have questions about:
· the Statute of Frauds “writing requirement” and 
· electronic contracts
Generally, contracts for the sale of goods must be in writing, and the writing must be signed by the parties to the agreement, and the parties must be sufficiently identified.  GC will be selling goods via the internet, and the owners are wondering whether these electronic contracts are valid and enforceable. 
Background Facts You Need To Know:  Company X, a company in Illinois, contracted via the internet with Windows Bright, a small window washing business in Missouri to purchase 4 cases of Shiny Lite window cleaning solution at $200 per case.  Company X paid via the internet with a company credit card.  The contract stated that the 4 cases of Shiny Lite would be shipped to Company X’s place of business in Illinois via UPS.  Once UPS delivered the Shiny Lite, the contract required Windows Bright to clean Company X’s windows.
Background:   Week 6
The GC owners are aware of the importance of contracts to both buy and sell goods and services.  They are reviewing the Uniform Commercial Code (UCC), Article 2, that covers contracts for sales of goods.  
The GC owners understand that the terms in their purchase contracts (i.e., contracts to purchase products from EPI) will require very different terms from their sales contracts reselling these cleaning products purchased from EPI. 
First, the owners want to focus on understanding their rights and obligations associated with reselling EPI cleaning products.
Winnie and Ralph ask you to prepare information to help the GC understand risks and possible liabilities related to the resale of EPI cleaning goods to customers.
You developed a hypothetical scenario for analysis and explanation for discussion with the GC owners.
Background Facts You Need To Know:  Office Cleaning Pros (Pros), a local company, emailed GC that it wanted to purchase some cleaning products. 
The email stated the following sales details:  
· Pros wanted to purchase 6 cases of Carpet Re-New cleaning solution from GC
· the price is $200 per case of Carpet Re-New
· Delivery was to be on or before April 1, 2019
· Delivery was to be made to Pros storage warehouse facility
GC did not respond to the email, but on April 1, GC delivered 6 cases of cleaning solution products to Pros office headquarters, located next door to Pros’ storage warehouse facility.  Pros moved the cleaning solution products from its headquarters to its storage warehouse facility 
Three days later, Pros inspected the 6 cases GC had delivered and discovered all 6 cases contained Floor Re-New cleaning solution, not Carpet Re-New as specified in the sales contract.
Background Facts You Need To Know:  Week 7
GC owners recognize the importance of effective recruitment and hiring.  They feel competent about recruiting and hiring new GC management but want to hire an expert to recruit and hire employees to develop and manage their website, internal computer systems, and IT support.  
They agree to hire a recognized expert in this area, George Tacy, to act as GC’s agent in hiring website/computer/IT employees.  The owners want to give full authority to Tacy to direct every aspect of recruitment and hiring of these employees, from the initial recruitment of applicants to the final hiring process.  
The GC owners want to ensure that their agreement with Tacy will be valid and include all important terms.  They have requested a meeting with TLG to discuss agency agreements.