1.You and a former classmate started a computer software company _ve years ago. Originally, the two of you were the

owners and only employees. The foundation of your company was your combined expertise in creating custom-designed

applications addressing the human resource needs of your clients. As your company grew, you added programmers that

now allow your business to provide a greater array of computer applications. You and your co-owner decide to raise

capital by making a public offering of stock. In preparation for going public, you visit with several of your most valuable

clients about investing in your company.

What concerns should you have regarding these conversations?

Is there anything about your expectations of the company's future performance you must or must not share?

2.Additional Consumer Protection

Janet buys a year's membership in a new spa and exercise gym that has just opened. She pays $500 with her credit card.

Less than one month later the business closes its doors, leaving 450 members without a place to work out. The owner,

who has vanished, also failed to pay his employees, rent on the building, and payments on his leased equipment.

Everyone suspects fraud. According to consumer protection laws, what recourse might Janet have under the

circumstances?