Week 5 Project: Previous Next Instructions Legal And Ethical

Week 5 ProjectPrevious Next Instructions Legal and Ethical Scenariosread

Read the scenarios and the questions that follow. Answer Scenarios 1 and 2, then select any two (2) of the remaining scenarios for a total of four (4) scenarios. You must also provide an answer for the recommendations section. Identify and analyze the legal issue(s). Apply legal concepts and make potential arguments as directed using laws, cases, examples, and/or other relevant materials.

Consider using short headings (consult APA materials) to separate the topics. Summarize the facts; do not copy the scenarios into the paper. Support your answers with information from the textbook and at least four scholarly sources in addition to the textbook or course lectures. By Day 7, prepare a 5 to 7 page paper that identifies the legal issues and potential solutions and answers all questions presented, supported by relevant legal authority. Do not exceed the page length by more than two pages.

Overview Headquartered in Savannah, Georgia, ________________ operates two coffee shops in Georgia and one in Alabama. Approximately 30% of the employees work full time; however, ____________ primarily hires part-time employees as baristas, delivery drivers, cooks and dishwashers. The company experienced explosive growth over the last four years, but with the growth came increased legal issues. The owners seek your advice on the following legal and ethical issues.

Scenario 1 – Business Organizations Bailey Andrews and Danita Brown met while working at Starbucks and attending college in Georgia. Bailey studied business at South University, while Danita attended the Art Institute for culinary management. The two friends were tired of working for someone else and opened [SELECT A NAME FOR THE COFFEE SHOP] as a partnership after college. Now that the business has grown, the two partners are considering a new legal form for their business. Analyze three types of business organizations Andrews and Brown might consider for their existing restaurant. Be sure to consider at least one limited liability option. Explain the advantages and disadvantages of each type. Select one type of business for Andrews and Brown and provide support for your choice. Select a name for the coffee shop and use it when answering the remaining scenarios.

Scenario 2 – Employment Discrimination Born in 1975, Juanita Mendoza immigrated from Mexico in 2005 and became a U.S. citizen in 2010. Mendoza speaks fluent English with a strong Hispanic accent. Her accent does not interfere with her ability to communicate with others. Mendoza worked as a cook and waitress for 20 years. Although she did not have any formal management experience, Mendoza applied for a shift manager’s job with [Restaurant Name]; however, she was not hired for the position. The restaurant currently employs 5 full time employees and 14 part time employees. Analyze the possible grounds Mendoza might have for a discrimination lawsuit against [Restaurant Name]. Provide support for each ground selected and then provide arguments that [Restaurant Name] could make to counter each claim. Explain how your answer might change if the restaurant only employs a total of 12 people.

Paper For Above instruction

The comprehensive analysis of legal and ethical issues faced by [Restaurant Name] involves exploring a range of scenarios that highlight critical domains such as business organization structures, employment discrimination, secured transactions, insurance liabilities, consumer protection, negotiable instruments, breach of contract, and ethical considerations. This detailed examination aims to guide the restaurant in legal compliance, risk management, and ethical integrity, ultimately fostering sustainable growth and a positive reputation.

Scenario 1 – Business Organizations

Bailey Andrews and Danita Brown’s decision to operate their coffee shop as a partnership reflects an initial entrepreneurial approach suited for small-scale businesses. However, as their enterprise expands, the choice of legal structure becomes crucial. Three primary organizational forms warrant consideration: sole proprietorship, partnership, and corporation, including LLCs.

Sole Proprietorship: This is the simplest form, where the owner has complete control. Its advantages include ease of formation, minimal regulatory requirements, and direct tax benefits as profits are taxed as personal income. Yet, disadvantages involve unlimited personal liability, which exposes personal assets to business debts—a significant risk if the business faces lawsuits or debts.

Partnership: Similar to sole proprietorship but involves two or more owners sharing profits and liabilities. Partnerships are straightforward to establish but suffer from joint liability issues unless structured as a limited partnership or LLP. Disadvantages include potential personal liability and disputes among partners, which can destabilize operations.

Limited Liability Company (LLC): Offers limited liability protection akin to a corporation but maintains pass-through taxation like a partnership. LLCs are advantageous for protecting personal assets while providing operational flexibility. Disadvantages involve state-specific laws, possible complex formation requirements, and ongoing compliance obligations.

Given the growth and the need for liability protection, an LLC emerges as the most appropriate choice. It shields personal assets from business liabilities—a critical consideration as the enterprise expands and risks increase. Therefore, the recommended legal form for [Name of Coffee Shop] is an LLC, which balances liability protection with operational flexibility.

Scenario 2 – Employment Discrimination

Juanita Mendoza’s application for a shift manager position and her subsequent non-hire raise potential discrimination claims based on national origin and possibly race. Under Title VII of the Civil Rights Act of 1964, discrimination based on national origin is prohibited. Mendoza’s strong Hispanic accent, despite fluency in English, could be scrutinized as a basis for employment discrimination if her English proficiency is not genuinely a job requirement but used discriminatorily. The fact that Mendoza has extensive experience and no management deficiencies counters a non-discriminatory rationale.

Possible grounds for a lawsuit include:

• Discrimination based on national origin: If Mendoza’s application was rejected due to her accent or perceived foreign status rather than merit, this constitutes illegal bias.
• Disparate treatment: If other candidates with similar qualifications but different accents or backgrounds were hired, Mendoza might claim unfair treatment.
• Hostile Work Environment: If Mendoza faced derogatory comments linked to her ethnicity or accent, this could underpin a harassment claim.

To counter these claims, [Restaurant Name] can argue that the decision was based on legitimate, non-discriminatory reasons, such as lack of requisite management experience or other qualifications. If the restaurant employs fewer than 15 employees (a small employer), the applicability of Title VII is limited, as federal protections typically cover employers with 15 or more employees, but state laws may provide additional protections.

Secured Transactions and Bankruptcy

Bayside Restaurant Supplies’ security interest in the commercial kitchen equipment grants it collateral rights. If [Restaurant Name] files for bankruptcy 18 months post-purchase, Bayside's rights depend on whether it perfected its security interest, usually by filing a financing statement. Per the UCC, perfected security interests survive bankruptcy, allowing Bayside to claim the equipment or its value. If not perfected, Bayside's claim is subordinate to unsecured creditors.

In the event of selling the collateral shortly before bankruptcy, Bayside may attempt to recover the value of the secured collateral, but if the sale was a fraudulent transfer to hinder creditors, the trustee could challenge it. Proper filing of a financing statement is crucial; failure to do so can render Bayside an unsecured creditor, significantly diminishing its recovery prospects.

Insurance and Agency

In the collision involving Dylan, Vickie Talley, State Farm, and [Restaurant Name], multiple legal principles apply. Dylan’s policy exclusions specify that damages arising while using the vehicle for carrying persons or property for a charge are not covered, indicating that the insurer may deny coverage if Dylan was acting within the scope of employment and using a vehicle for delivery, which often involves commercial auto coverage rather than personal auto insurance.

The agency relationship establishes that Dylan acts as an agent of [Restaurant Name], making the restaurant potentially liable under vicarious liability principles. Vickie Talley could sue Dylan directly for damages, with potential claims against State Farm based on policy exclusions. The restaurant also bears responsibility for Dylan’s actions if the delivery was within the scope of employment, emphasizing the importance of appropriate commercial auto coverage.

Consumer Protection

Legal actions by Nik Carlson and Joe Swanson hinge on state and federal consumer protection laws. Carlson’s claim that not publishing prices constitutes an unfair business practice may be grounded in laws requiring accurate advertising and pricing disclosures. Swanson’s complaint that the restaurant concealed costs until after purchase implicates deceptive practices under the Federal Trade Commission Act and applicable state statutes.

Given transparency requirements, the restaurant should disclose prices on menus to avoid violations. Typically, courts favor consumers in such cases, interpreting the law to promote fair and honest practices. Therefore, it is likely Carlson and Swanson would prevail unless the restaurant can prove that the omission was inadvertent and corrected promptly.

Liability on Negotiable Instruments

Jenice’s forgery and deposition of the check in Bayside's name represent a fraudulent scheme. Under the UCC, the bank that accepts a check in good faith and for value typically bears the loss unless it was negligent or involved in fraud. Since Wells Fargo accepted the check and credited Bayside, and the bank had no reason to suspect fraud, Bayside and [Restaurant Name] may be liable. The drawee bank, SunTrust, might bear losses if it failed to verify the check properly.

Breach of Contract and Remedies

The shipment of damaged and missing tables breaches the sales contract. Under the UCC, [Restaurant Name] could reject the entire shipment, seek repairs or replacements, or claim damages for breach. The damaged tables and missing chairs diminish the value of the goods received and may entitle the restaurant to recover the purchase price or damages reflecting the defects.

Recommendations for Legal and Ethical Compliance

To mitigate future legal issues, [Restaurant Name] should implement comprehensive policies, including formal employment practices, transparent pricing, regular legal training, and compliance audits. Establishing clear contracts with vendors and appropriate documentation of transactions ensures legal protection. Ethical practices, such as transparency and honesty in advertising, foster trust and customer loyalty. Maintaining open communication channels and promptly addressing employee grievances can prevent discrimination and harassment claims. Investing in staff training on legal and ethical standards cultivates a responsible corporate culture.

Conclusion

In conclusion, the legal landscape for [Restaurant Name] encompasses multiple facets that require vigilant management and proactive strategies. Adopting a suitable business structure like an LLC provides liability protection; understanding employment law promotes fair treatment; and adhering to secured transaction regulations safeguards assets. Ethical integrity, coupled with rigorous compliance, will support sustainable growth and a positive reputation, essential in the competitive hospitality industry.

References

• Cheeseman, H.R. (2020). Business Law: Legal Environment, Online Commerce, Business Ethics, and International Issues. Pearson.
• O’Neill, J. (2018). Business Law. Cengage Learning.
• U.S. Department of Labor. (2023). Employment Discrimination Law. [Online]
• Uniform Commercial Code. (2024). Official Text and Comments. National Conference of Commissioners on Uniform State Laws.
• Federal Trade Commission. (2022). Consumer Protection Laws. [Online]
• Fitzgerald, J.R. (2019). Secured Transactions Under the UCC. Thomson Reuters.
• Schwartz, H. (2021). Insurance Law and Practice. Aspen Publishers.
• Holland, S., & Williams, M. (2020). Business Ethics and Corporate Responsibility. Routledge.
• Georgia Department of Labor. (2023). Employment Law Resources. [Online]
• Alabama Department of Labor. (2023). Employment Rights and Protections. [Online]