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Cesar Ritz Colleges

BA in Hospitality Business Management

“What goes around, comes around”

Submitted on: 12/09/2019

By:

Mariana Gómez 737025 Jocelyn Chang 737960

Leidy Hernández 738251 Lena Maria Merk 739002

Submitted to: Mr. Pascal Christian Mr. Scott Bergstedt

LAW201-BA

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Table of Contents

1. Part 1: Choice of business

a. Business Concept

b. Target market

c. Location

2. Part 2: Business Name

a. Explanation of Name

b. Legalities

3. Part 3: Business Entity

a. Advantages and Disadvantages of

i. Sole Proprietorship

ii. General Partnership

iii. Limited Partnership

iv. LLC/ Corporation

b. Choice of Entity

4. Part 4: Liabilities and Case Summary

a. Possible Risks regarding the Business

b. First Case

c. Second Case

5. Appendixes

6. References

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Part 1: Choosing a business

As has become more obvious in recent years, the interest people are showing in

sustainability and eco-friendly products has increased significantly. Online searches

for sustainable fashion and related subjects have increased by 66% when comparing

numbers from 2018 and this year, a UK based fashion platform has reported. (Lyst,

2019) For this reason our business will be a coffee shop selling organic, fair trade and

planet conscious coffee and snacks alongside a selection of sustainably produced

slow-fashion brands, vintage clothing and low-impact, zero waste cosmetics.

When considering a target market for any business, it is necessary to look at general

trends of purchasing as well as generation-based research. Topic searches for

information on sustainability and slow fashion have increased in recent years, showing

that there is an increase in interest in the population worldwide.

Google Trends for the term ‘Sustainability’ ("Search Sustainability", 2019)

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Google Trends for the term ‘Slow Fashion’ ("Search Slow fashion", 2019)

Further, Millennials are more likely than the average American citizen to purchase

goods and services from companies that show social and environmental efforts.

Especially females are about 10 % more likely than Millennial males to choose the

more sustainable or ethical product when given the option. (Komornicki, 2015) This

shows, that companies with a clear

commitment towards corporate

social responsibility and the

environment especially, have an

advantage when trying to attract this

target market, birth years including

1861-1996 or end of the 20th century.

As can be seen in the population

pyramid of Seattle, Washington, this

generation makes up the biggest

part of the population in the

Metropolitan Area of about 3,5 Million inhabitants. ("Seattle Population", 2019)

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Part 2: Business Name

Explanation of Name

The phrase “What goes around, comes around” is often used to describe similar

concepts to Karma or perhaps describes a similar statement as the golden rule. This

means that if you do good you will be treated well in return. Since the shop will be

selling all kinds of planet conscious and ethically sourced foods, drinks and products,

the name aims to make a statement and encourage costumers by implying they are

doing something good- not only for the planet and producers but also for themselves.

Furthermore, the store will be selling vintage clothing, second hand clothing and there

will be a sort of library with old books that people can enjoy while they are in the coffee

shop. This reusing of materials that have gone around and have been owned by people

also is in line with the name and slogan of the business.

Legalities, Trademarks

“What goes around, comes around” is a commonly used term in language and there

are some similar businesses using the same Name for vintage clothing stores. They

are, however in different states like California, New York and Miami. Although there

are similar aspects of our business to one other store, our concept of selling fair trade

and sustainable clothing and cosmetics as well as coffee and snacks on top of just

vintage clothing differentiates our business enough from the others. It is therefore likely

that our name will be approved and trademarked and we will be able to use it for the

business. Please refer to the appendixes on page 12 for the detailed online search.

Further, the business name is most likely an arbitrary trademark since it does not

describe the products and services of the shop in any way. It gives consumers an idea

but, really, it could be anything. ("What Are Generic, Descriptive, Suggestive, Arbitrary,

and Fanciful Trademarks? | Trademark Factory®", 2016)

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Lastly, our logo was created entirely from scratch

and uses very basic yet effective symbols. As this

was made from a creative process there should not

be and trademark or copyright infringement.

Part 3: Business Entity

Advantages and disadvantages of Sole Proprietorship

Obvious advantages of a sole proprietorship are the ease of formation as well as the

reduced risks of tension between multiple owners. Administrative procedures such as

tax reports and registering the business are also easier than with corporations or other

business forms. Especially for small businesses this is also useful and more profitable

because the owner alone is the beneficiary of the business profits. Further, the

unlimited personal liability of the owner for debts, liabilities and taxes may also be an

issue since there may be substantial losses leading to personal bankruptcy if the

business does not generate profits from the beginning.

Advantages and disadvantages of General Partnership

Similarly to a sole proprietorship, the profits, taxes and liabilities are registered in each

of a minimum of two partners’ personal income statements, who are therefore

personally liable in case of bankruptcy. The main problem with this form of business is

that there may be disputes and even lawsuits against one or more partners for financial

reasons, contract disputes or due to business decisions which may lead to lawsuits,

breach of contracts or even the dissolution of the business.

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Advantages and disadvantages of Limited Partnership

In many ways similar to a general partnership with the difference of there being a

partner that is not liable in case of debts or bankruptcy. There must be at least one

general partner. There are more legalities involved in the creation of this entity since

contracts have to be drawn up as well as certain documents, such as a certificate of

limited partnership, must be filed with the state government regulating the duties of

each partner as well as the procedures in case of termination of the business or the

partnership in general.

Advantages and disadvantages of a Limited Liability Company/ Corporation

The biggest advantages of a LLC would be that all ‘partners’ or members only have a

limited personal liability that is limited to only their capital contribution. All other

obligations are towards third parties and the company itself is liable. Of course, there

is more administrative effort involved since terms and conditions as well as ownership

interest and terms of duties and responsibilities of members must be clearly stated and

considered by the government before it is authorized, this may be a lengthy process.

Another advantage would be the distribution of profits/dividends is normally done in

direct relation to the individual members contribution and/or original investment in the

company. Being able to gather funds easily since many partners can contribute is

another advantage as well as the legal security since there are contracts and written

declarations involved, making it easier to navigate difficulties and dissolutions in case

they happen.

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Choice of Entity

For the purpose of our business, we have decided that the formation of a general

partnership would most likely be the best path. This is especially due to the ease of

creation of this entity. Furthermore, all partners are equal and have equal say in the

business and are liable for it as well. This will most likely lead to a high level of

motivation and efforts of all of the partners since the success of the business will not

only by in their personal interest but also in their best financial interest. However, there

should be a contractual agreement amongst all of the partners to make sure the duties

and responsibilities are clear and procedures are in place to facilitate the resolution of

conflicts or negligence of one or more partners.

Part 4: Liabilities and Case Summaries

Possible Risks regarding the Business

1. For selling products that are not really organic/fair trade/ sustainable leading to

accusation of false advertising

2. The lack of knowledge of an employee at the time of selling/serving some of our

products that may contain some ingredients that could be harmful to the health

of the client due to allergies or contamination of inappropriate objects.

3. Misappropriation of the concept: as we may be using another person’s name or

characteristically using any of another business commercial purposes without

knowing.

4. Another of the reasons could be due to product liability in which the plaintiff can

claim either a defect in manufacture from our products, a defect in warning,

packaging or other. (Chapter 12, Torts and Strict Liability).

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First case:

Hult vs Daniele International 1:2018cv10453

The plaintiff and his wife bring this case as the plaintiff allegedly suffered as a result of

consuming deli meat from Daniele’s Italian Brand Gourmet Pack, which contains the

ingredients of milk, that the plaintiff is allergy to. The label on the gourmet pack

indicated that on the package’s ingredient list includes one of the elements in milk. The

plaintiff claims that the package should write “contains milk” instead of naming the

element since not everyone is a professional in chemistry.

The plaintiff claims that the organization caused the allergy as they violated of

FALCPA, which does not apply to meat products. The FDA, Food and Drug

Administration is charged with overseeing the FFDCA.

Since this case is not closed yet and the court have not made any decision, we suggest

that the court to consider both aspects of the plaintiff and defendant. First of all, the

plaintiff is suffering from the allergy and if the defendant is not taking the responsibility,

the plaintiff has to pay for a huge amount of medication fee, but what he only did is

eating a gourmet pack. Secondly, as this company is an international company, the

customers are not only from United States, but also from around the world. If the

company keep refusing to change their package and the proposal of the plaintiff did

not pass, people from abroad with same situation consumed the product will make the

whole process more complicated.

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Second Case:

Department of Justice; U.S. Attorney’s Office; Northern District of Iowa

Case Numbers: 18-CR-2034, 18-CR-2058, 18-CR-2059, and 18-CR-2060.

Facts: Four farmers were accused of selling organic products that actually were not

among them is a Missouri farmer Randy Constant, and three Nebraska farmers. The

federal prosecutors say that farmers are responsible for selling such products for seven

years. Constant owned a grain farm based in Iowa, which sold its corn and soybeans

primarily as feed for chickens and cattle. Those animals were then marketed for its

meat as organic. Constant admitted to selling to his customers the grain grown in his

certified organic fields in Nebraska and Missouri when the grain was not organic, either

because the organic fields were sprayed with unauthorized substances, or the organic

grain was mixed with non-organic grain (Just the real news, 2019).

Issue of law: The district judge had to determine whether Constant's fraud caused

"extreme and incalculable damage" to consumers. The lawsuits seek class action

status on behalf of the people who bought the grain and request the return of their

money, as well as punitive damages and attorneys' fees. The judge also added that

Constant faces a possible maximum sentence of 20 years in prison, at least a fine of

$ 250,000 and up to three years of probation after any imprisonment (United States

Department of Justice, 2018).

Decision: The four farmers were convicted of fraud charges in a federal court in Cedar

Rapids. The fraudulent issued involved at least $ 142,433,475 in grain sales. At the

hearing, he admitted that he tricked customers into thinking they were buying certified

organic grain when the grain he was selling was not organic (Foley, 2019).

Opinion: The jury's decision was totally correct since Constant having sold the organic

grains and then admitting that they were not, it was clearly understood that it was a

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fraud. In addition to that, because of people with this type of dirty business, the trust of

those buyers who take their work to market organic products seriously is lost, and

Constant and the other three men may have had worse problems if any of their clients

could have any disease because of that fraud.

Undoubtedly, this may be a reason why many businesses selling organic products

could be sued, by committing fraud, selling products certified as organic that really are

not, since this market is growing there are many people who take advantage of it.

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Appendixes

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References

Lyst. (2019). Sustainable and Ethical Fashion. Retrieved 7 September 2019, from https://www.lyst.com/news/sustainable-ethical-fashion/#green-searches Komornicki, S. New Cone Communications Research Confirms Millennials as America's Most Ardent CSR Supporters — Cone Communications | Cone | Cone PR | Cone Inc | PR Agency | Boston | NYC. Retrieved 7 September 2019, from http://www.conecomm.com/news-blog/new-cone-communications- research-confirms-millennials-as-americas-most-ardent-csr-supporters

Search Slow fashion. (2019). Retrieved 6 September 2019, from https://trends.google.com/trends/explore?date=today%205-y&q=slow%20fashion Search Sustainability. (2019). Retrieved 7 September 2019, from https://trends.google.com/trends/explore?date=today%205-y&q=%2Fm%2F0hkst

Seattle Population. (2019). Retrieved 6 September 2019, from http://worldpopulationreview.com/us- cities/seattle-population/

What Are Generic, Descriptive, Suggestive, Arbitrary, and Fanciful Trademarks? | Trademark Factory®. (2016). Retrieved 7 September 2019, from https://trademarkfactory.com/faq/what-are-generic- descriptive-suggestive-arbitrary-and-fanciful-trademarks

Just the real news. (2019). Field of Schemes Fraud Results in Over a Decade in Federal Prison

for Leader of Largest Organic Fraud Case in U.S. History. Retrieved 09 September 2019.

[Online]. Available: https://www.justtherealnews.com/2019/08/19/field-of-schemes-fraud-

results-in-over-a-decade-in-federal-prison-for-leader-of-largest-organic-fraud-case-in-u-s-

history/

United States Department of Justice. (2018). Owner of Northeast Iowa Organic Grain

Brokerage Pleads Guilty to Fraudulent Sales Totaling Nearly $140 Million. Retrieved 09

September 2019. [Online]. Available: https://www.justice.gov/usao-ndia/pr/owner-northeast-

iowa-organic-grain-brokerage-pleads-guilty-fraudulent-sales-totaling

Foley, R. (2019). Farmer behind the U.S.'s Largest Organic Food Fraud Scheme Dies by

Suicide. Retrieved 09 September 2019. [Online]. Available: https://time.com/5657001/organic-

food-fraud-farmer-suicide/

Chapter 7: Business Organizations by Scott Bergstedt (WSU) Lesson given at Cesar Ritz

Colleges Switzerland; Slides available online

https://learn.wsu.edu/webapps/blackboard/execute/displayLearningUnit?content_id=_323861

0_1&course_id=_220133_1&mode=view

Like no other being, the butterfly embodies the change in life and the resurrection of the soul

from the body.

Brand âme rose = pink soul

With its two mythological meanings, the butterfly forms the perfect transition for a wonderful culinary story.

On one hand there is the symbolism for change and a new beginning. On the other hand is the meaning of the re- born soul.

And because there are already several restaurants and cafes called "Butterfly" or "Papillon", "âme rose" is a much more elegant metaphor and at the same time limitlessly romantic.

Brand Story

The aviary with a cherry tree and living, colorful butterflies forms the center of the "âme rose" restaurant.

According to the symbolism of the butterfly, Mediterranean dishes are completely reinterpreted. 150,000 different types of butterflies inspire the creativity of the chefs in their search for the soul of each menu.

At the bar, colorful butterflies are used as inspiration for new drink and cocktail interpretations.

âme rose stands for the reborn culinary soul inspired by butterflies.

Concept

The idea is to be inspired by the sight of butterflies, to let their wonderful colors lead the chefs to extraordinary dishes.

On the menu, the guest can see which type of butterfly the chef and his team used as an impulse to conjure up each new culinary creation.

In this completely new type of culinary interpretation, the âme rose kitchen takes place in a globally unique position.

This concept works just as well for a 5- course evening dinner as it does for a brunch at lunchtime.

Remember, the butterfly is also a symbol of change!

Inspired by a butterfly

Inspired by a butterfly

Inspired by a butterfly

Inspired by a butterfly

Inspired by a butterfly

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