Mia Morgan has a criminal record and 20 years of top-level experience in the food industry. Morgan
Question:
Mia Morgan has a criminal record and 20 years of top-level experience in the food industry. Morgan wants to open and operate Bigg Richards (BRs), a restaurant. State statutes require the issuance of several permits to operate restaurants. State regulations do not allow people with criminal records to apply for these permits.
Morgan and Ava Anz, who has never worked in the food industry, enter into a contract to operate BRs. The contract states that Morgan is responsible for making all business decisions related to the restaurant, and states that Anz is to be the named owner of BRs, obtain the necessary state documentation to operate the restaurant, and work at least 50 hours per week at BRs.
The contract sets Anz first year compensation as follows: $1,000 per month for the first 12 months, with a lump sum payment of $30,000 plus 10% of the year's profits at year end. Morgan tells Anz that, since restaurants usually take awhile to become profitable, such arrangements with very low starting pay are standard industry practice. In fact, Morgan expects to make profits of $15,000 per month for the first 6 months, and $20,000 per month for the next 6 months.
Anz secures the necessary state licenses under her name and BRs begins operating. BRs operates under the contract and according to Morgan's expectations for 11 months and ten days, at which point Morgan terminates the contract and fires Anz. Anz feels wronged and sues Morgan seeking compensation.
Fully discuss all legal issues relevant to this lawsuit, including what must be proven to establish any relevant legal theories, and how a court would most likely resolve these issues.
Smith and Roberson Business Law
ISBN: 978-0538473637
15th Edition
Authors: Richard A. Mann, Barry S. Roberts