Rosina has recently developed a highly original computer program that, she claims, will revolutionize the practice of landscape architecture. She has been advised by a consultant that marketing the software is likely to be a highly profitable venture. However to develop and market the project will require working capital, which Rosina does not have. Fortunately her uncle, Bartolo, has agreed to put $100,000.00 of his savings into the project. With the held of a lawyer friend (who has advised them that they should each obtain independent legal advice), they have worked out a rough structure for their project, as follows: a) They will form a corporation, of which they will be the sole shareholders; b) Rosina will assign her copyright in the program to the corporation and will work full-time in developing and marketing it; c) Bartolo will contribute $100,000.00 in cash as working capital and will participate in major management decisions but will not be responsible for the day-to-day running of the business. Since Rosina will be giving up a fairly well-paid job in order to develop the new business, she is concerned that she should not be left entirely without income during the initial period (when there would be no sales revenue). In turn, Bartolo would like there to be some sort of guarantee of a reasonable return of income on his investment. Bartolo should:
Question 1 options:
take back a secured bond or debenture
become a common shareholder only
become an employee
insist on being the president
2. Rosina has recently developed a highly original computer program that, she claims, will revolutionize the practice of landscape architecture. She has been advised by a consultant that marketing the software is likely to be a highly profitable venture. However to develop and market the project will require working capital, which Rosina does not have. Fortunately her uncle, Bartolo, has agreed to put $100,000.00 of his savings into the project. With the held of a lawyer friend (who has advised them that they should each obtain independent legal advice), they have worked out a rough structure for their project, as follows: a) They will form a corporation, of which they will be the sole shareholders; b) Rosina will assign her copyright in the program to the corporation and will work full-time in developing and marketing it; c) Bartolo will contribute $100,000.00 in cash as working capital and will participate in major management decisions but will not be responsible for the day-to-day running of the business. Since Rosina will be giving up a fairly well-paid job in order to develop the new business, she is concerned that she should not be left entirely without income during the initial period (when there would be no sales revenue). In turn, Bartolo would like there to be some sort of guarantee of a reasonable return of income on his investment. Rosina should:
Question 2 options:
become a secured creditor only
take preference shares
take common shares
become a creditor only
3. Rosina has recently developed a highly original computer program that, she claims, will revolutionize the practice of landscape architecture. She has been advised by a consultant that marketing the software is likely to be a highly profitable venture. However to develop and market the project will require working capital, which Rosina does not have. Fortunately her uncle, Bartolo, has agreed to put $100,000.00 of his savings into the project. With the held of a lawyer friend (who has advised them that they should each obtain independent legal advice), they have worked out a rough structure for their project, as follows: a) They will form a corporation, of which they will be the sole shareholders; b) Rosina will assign her copyright in the program to the corporation and will work full-time in developing and marketing it; c) Bartolo will contribute $100,000.00 in cash as working capital and will participate in major management decisions but will not be responsible for the day-to-day running of the business. Since Rosina will be giving up a fairly well-paid job in order to develop the new business, she is concerned that she should not be left entirely without income during the initial period (when there would be no sales revenue). In turn, Bartolo would like there to be some sort of guarantee of a reasonable return of income on his investment. Rosina should:
Question 3 options:
vote at each meeting
insist on being a director
seek financial statements
ask for a monthly salary

Arina starts a workout-hailing company called Swole, which connects users to personal trainers anytime, anywhere via the Swole App.

Swole customers download an app, then use it to summon personal trainers to their current location. Customers open the app, enter their current location, and send out a request to train for a certain period of time. When a nearby SwoleTrainer accepts the request, the trainer runs to the customer. The trainer appears as a dot on a map on the customer’s app so the customer can track the trainer’s arrival. A customer and trainer exchange money via the Swole App, which links to the customer’s credits card.

Swole sets the price per session, which depends on factors like the session’s length, location, and the trainer. For example, “SwoleDeluxe” trainers bring weights, whereas “SwoleX” trainers use calisthenics only. Customers who wish to share the cost of a trainer might order through “SwolePool.”

A trainer cannot work for Swole unless they have been a licensed personal trainer for at least one year. Swole does not license its trainers; trainers must get their licenses from accredited licensing bodies like The International Sports Sciences Association or The National Council on Strength & Fitness. However, SwoleTrainers take an 8-hour online class about Swole etiquette and company culture.

SwoleTrainers set their own schedules, create their own workout routines, and are free to accept or decline training requests. They may train for competitors, like gyms, or themselves while working for Swole.

Once Swole becomes wildly successful, SwoleTrainers sue the company demanding health benefits. Arina argues that the trainers are not eligible for benefits because they are independent contractors. The trainers argue that they are employees.

Will a court find that the trainers are independent contractors or employees?

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Flag question: Question 14

Question 1410 pts

Harper owns the Bayside Grill, a restaurant on the Chesapeake Bay in Maryland. Thanks to its abundance of open-air seating, the restaurant is profitable during the summer of 2021. In May, June, and July of 2021, the restaurant generates about $1,000 in profit on Tuesdays, Wednesdays, and Thursdays ($1,000 each day) and approximately $1,500 per day on Fridays, Saturdays, and Sundays.

Ella owns FoodTech, a company that installs software on restaurant computers. FoodTech’s software is a single program that integrates all restaurant functions, including reservations, orders, customer bills, accounting, and more. Bayside Grill uses FoodTech’s software.

Harper and Ella sign a valid contract under which Ella will install a new version of FoodTech’s software on the Bayside Grill’s computers. The contract specifies that the installation must occur between 12:00 a.m. and 11:59 p.m. on Monday, August 2, 2021, because the restaurant is usually closed on Mondays, and must be closed for the installation to occur. The exact language of the contract states that the installation will occur on Monday, August 2, “to prevent Bayside Grill from losing sales revenue.”

When Ella installs the software program, she makes a mistake that ruins all 10 of the Bayside Grill’s computers. Harper purchases 10 new computers for $700 each, but Ella does not finish correctly installing the software program until 11:30 p.m. on Friday, August 6. The restaurant remains closed from August 2 through August 6, and reopens normally on Saturday, August 7. It is undisputed that the restaurant cannot function without its computer system.

Unfortunately, Harper had promised her fiancé, Estevan, that she would host a dinner for him and several of his friends on Thursday, August 5. Because Ella ruined Bayside Grill’s computers and failed to install the new version of the software on time, the restaurant was closed on August 5 and Harper could not host Estevan’s gathering. This caused Estevan to break off his engagement with Harper, forever. This was a disappointment for Harper, since Estevan was worth $44 million and had told Harper repeatedly that once they were married, half of that money would be hers. Harper blames Ella for ending her relationship and ruining her chances at $22 million.

Harper sues Ella for breach of contract. How much will Harper receive in damages?

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Flag question: Question 15

Question 156 pts

The Arnold YMCA contracts with PumpedUp Construction to demolish and rebuild its fitness center. PumpedUp Construction breaches the contract, taking much longer than anticipated to complete the new gym.

Tristan, an aspiring fitness model and YMCA member, sues PumpedUp Construction for its breach of contract. Tristan can prove that PumpedUp’s breach has resulted in him losing muscle mass and, as a result, over $55,000 in fitness modeling contracts.

PumpedUp Constructions asks the court to throw out Tristan’s lawsuit, arguing that Tristan does not have the right to sue. Does Tristan have the right to sue PumpedUp Construction?

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