03 Jul Create a Business
Create a Business DIRECTIONS: ON A SEPEARATE PIECE OF PAPER – USING WORD OR DOCX – TYPE THE ANSWERS TO THE FOLLOWING QUESTIONS USING THE SAME NUMBERS I’VE PROVIDED. YOU DO NOT NEED TO INCLUDE THE QUESTION. Orientation: You are the owners and managers of a popular café-wine-bakery-eatery located in historic downtown Flagstaff, Arizona. The restaurant serves homemade breads and pastries, sandwiches, salads, fresh coffee beverages and has a large selection of expensive wines. You have the responsibility of running the restaurant and need to be aware of various legal and ethical issues that might interfere with your success. You should use your textbook to find the answers to these questions. If you cannot find the answer in the textbook, you may use the internet as a source. 1. Choose a NAME for your restaurant. What is it? 2. What are the steps should you take to insure the name is available for the taking? 3. How would go about protecting your restaurant’s name? (hint: Check Chapter 8) 4. Under what form of business will your restaurant be operating (sole proprietorship, partnership, LLC, Franchise or Corporation)? 5. Why did you choose this form of business? What are three advantages and three disadvantages to the form of business that you chose. Explain and use the textbook. FACT PATTERN: Last year one of your competitors (restaurant) sponsored a “4 on the 4th” event – where patrons of that restaurant were given a really good deal if they ordered (and consumed) 4 bottles of wine with dinner. That restaurant made a LOT of money on the event and you are considering doing something similar. 6. What are three risks (legal) to putting on an event like this? MORE FACTS: Assume your restaurant decided to host a “4 on the 4th” type of event. If a customer, Chris, participated in this event, ordered and consumed 4 bottles of wine and then staggered towards the door to leave the restaurant. Bobby, the bus boy noticed the customer stumbling out. Bobby, with a cell phone in his hand, ran after the patron who had already gotten into his car. Craig sees Bobby chasing after him (and thinks the cell phone is a gun) and tries to speed out of the parking lot to get away. As he is speeding away, Chris drove over a person in the parking lot and seriously injured them. 7. Crimes: What crime, if any, was committed by Bobby? What crime, if any, has been committed by Chris? Explain your answer. 8. Torts: What tort, if any, was committed by Bobby? What tort, if any was committed by Chris? Explain your answer. 9. Liability: Do you believe the restaurant will have to pay for this accident (to the victim)? In other words, can the person that was run over sue the restaurant for negligence? Please explain your answer using the LAW and elements of negligence (Duty, Breach, Causation and Harm). (Hint: Was the employee/agent responsible for the accident? Does an employer/principal have liability for its employee/agent’s torts?… if so when?) Before you begin – look up A.R.S. 4-311 for help with your answer. This is the law for shop owners regarding allow a patron to consume alcohol to excess. Dram Shop Law – A.R.S. 4-311 …
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