BADM $230-$ Final Exam $($Fall $2024)$

Question #$1$

Harry has been a lifelong gamer and role$-$playing enthusiast, and one day, he decides that he likes it so much he is going to start up a business, "Wizards, LLC$",$ a magic$-$oriented hobby shop and gaming store. He is short on funds, so he decides to go to the bank for a loan and sell stock to get capital for his startup. The bank gives him a secured loan of $$100,000.$ In the meantime, Harry also sells $$500,000$ worth of stock. Hermione and Draco each buy $$200,000$ worth of preferred stock.

Meanwhile. Ron and Voldermort each purchase $$100,000$ of common stock. Dumbledore tells Harry he won't buy stock in the company, but he will purchase $$200,000$ worth of bonds and will cosign a second bank loan of $$150,000.$ Everything is fine for a few months until the business goes under $($poor wand sales$),$ and Harry has to file for bankruptcy as the bills have piled up$.$ During the bankruptcy proceedings, it was discovered that Harry was commingling business and personal funds. Also, Ron is planning to file a suit for defective wands. Based on those facts, discuss what the legal ramifications are for all parties involved

Question #$2$

Don and Michael are merchants who have done business for years. One day, he calls Michael with an offer he can't refuse. He wants to sell Michael $12,000$ cans of $"$Mr$.$ Ed's" horsemeat monthly for $$1$ per can for $12$ months. Each delivery would consist of $1,000$ cans. He leaves Michael a message and tells him that unless he explicitly says $"$no$",$ he'll ship the cans. Michael never calls him back and receives the horsemeat and puts it on the shelf in his store. Two months later, Mario comes in with a can of horsemeat and tells Michael it is really moose meat. Oddly enough, it tastes like the "Bullwinkle" brand. $($Moose meat$).$ Michael calls Don to tell him about the mistake. Don says, "Let's cancel the old deal, and I'll send you a new shipment and guarantee you a new price for a year of $75$ cents per can?" Michael agrees, but when the new horsemeat arrives, it's the $"$Hi Ho Silver" brand, which has been banned in some jurisdictions for making people sick. Micheal tells Don he is not going to pay him.

Discuss the relevant legal issues under the Uniform Commercial Code and traditional contract law.

Question #$3$

Jim is the owner of Trek Delivery, LLC$.$ They contract out with drivers to make numerous

deliveries for other companies. On Thursdays, Scotty drives across town and delivers crates of whiskey to local bars. At each bar, he picks up checks from the tavern owners as payment and brings them back to Jim at the end of the day. One day, while out on his runs, Scotty gets done a little early and decides to stop by his house for a late lunch before taking the checks back to Jim. He has a big meal and takes a nap. He oversleeps and rushes to get back to Jim. He takes an alternate route and ends up getting into an accident. His truck runs into Uhura's hair salon. When the truck hits the salon, it knocks over a bottle of Romulan hair gel. Uhura did not screw the lid on tight when she last used it$,$ so it got in Checkov's eyes, blinding him. Jim fires Scotty and calls him a "dirty, no good lazy Scotsman!" Based on the following, answer the

following questions.

$1.$ What legal recourse does Uhura have?

$2.$ What legal recourse does Chekov have?

$3.$ What legal recourse does Scotty have?

Question #$4$

Leonard, Sheldon, Howard and Raju are thinking about starting a business, Big Bang Enterprises.

They are intelligent, but aren't familiar with the world of business. So they have come to you as you have taken this class. What should they know about starting a business, financing it and how to be successful?

Question #$5$

One day, Abdul is at a Chicago White Sox$/$Seattle Mariners baseball game. He gets up to go get a beer, a couple of hotdogs, and popcorn. While walking over to the stand, he is hit in the head with a baseball and forgets everything he ever knew about business law.

He reached out to you since

you did well in this class. Wh