LAW MINI CASE ASSIGNMENT
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SampleAnswers.pptxOn inside of name tent: (1) 1st 3 words that come to mind when you hear “law” (2) your biggest career goal (3) part of the course that might help you achieve it
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Greatest Course Ever!
Law school: $150,000 + 3 years
Entrepreneurs, e.g., the CEO of largest clean tech hub in US, Greentown Labs, on the biggest minefields related to +100 start-ups advised:
- exactly the topics we cover in this course (esp. HR & biz formation).
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Greatest Course Ever!
Mission:
Practice legal astuteness – as a tool of an entrepreneurial leader
Use law a lens of strategy
Practice generalizable skills (issue spotting, active listening)
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Greatest Course Ever
How to get an A:
10% reflections (group)
20% contribution/participation (individual)
1st half:
20% one-pager: LEAP project – legal issues memo (group)
2nd half:
25% active exam review
25% final exam
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Greatest Course Ever
How to get an A:
10% reflections – 10-15min after class, post take-aways on Blackboard
20% contribution – adding value to class conversation
So no stress
Show up
Post after every meeting … ok to collect & publish?
Explicitly try to ask or apply something that shows you read/skimmed
The Bagley handbook
The Siedel book (law related to ethics and strategy)
(share the JB standard for an A, A-, B+, B)
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Greatest Course Ever
How to get an A:
25% exam – can do it as take-home, plenty of practice & review
25% exam review – we’ll do it together, a checklist approach
25% LEAP project
(your choice) speak with someone of your choice about lessons learned
So no stress
We will practice IRAC and issue-spotting in real life scenarios
Practice exam (and answer key) posted
Rubric (also a checklist with deadlines)
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For the Exam - IRAC: a generalizable skill
Ask yourself, or pause for clarification:
“How would I write-out briefly…”
Issues (in any situation)? “Is this situation here fun yet?”
Rules (sources)? “Generally, law-related things are fun & valuable.”
Analysis? “Here, we are in a situation related to law.”
Conclusion: “Therefore, we are having fun!”
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Alpaca Dave, Part 1
“Alpaca” Dave, a disgruntled Boston area professional, quits and starts alpaca farming.
He takes out a bank loan, purchases land, and buys a small herd of 10 alpacas from another farmer.
He immediately begins to sell Alpaca fleece products under the “Alpaca Dave” brand name.
Dave’s total investment is around $50,000, and he makes $5,000 in profits in his first year.
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Model answer:
Issue:
What kind of a business form does Dave have?
Rule:
Generally, one can just start-up an activity with no formalities – the founder then becomes a sole proprietor.
Analysis:
Here, there are no facts to suggest Dave engaged in any formalities.
Conclusion:
Therefore, Dave is a sole proprietor.
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Alpaca Dave, Part 2
Sales expand rapidly, so Dave decides to bring his friend and neighbor, Alpaca Sue, into the business, calling her his partner.
Sue expands the grazing land available to the venture by letting the alpacas graze on her farm.
She also feeds the alpacas one day per week so that Dave can have a day off.
In exchange, Dave promises Sue 10% of the net profits but says he’ll absorb any losses himself.
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Model answer:
Issue:
What kind of a business is this?
Rule:
Generally, partners share control and split both profits and losses.
Analysis:
Here, control and profits are shared, but not losses.
Conclusion:
Therefore, this is not a partnership.
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Alpaca Dave, Part 2 (version B)
Sales expand rapidly, so Dave involves his friend and neighbor, Alpaca Sue.
They never sign a partnership agreement, nor call each other partners.
Sue helps with daily feeding and decisions around the farm.
Dave and Sue agree that Sue will share in 10% of both profits and losses.
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Model answer:
Issue:
What kind of a business is this?
Rule:
Generally, partners share control and split both profits and losses.
Analysis:
Here, control and profits and losses are shared.
Conclusion:
Therefore, this is a partnership (an implied partnership)
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Alpaca Dave, Part 3
Same intro as Part 2(B) Dave and Sue are in an implied partnership…
Sue is driving back from an alpaca show and decides to stop for a coffee on the way home.
Unfortunately, Sue – because she is speaking on her phone and checking her Twitter feed while backing-up her vehicle – drives over pedestrian Wanda in the parking lot.
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Model answer:
Issue:
Who is liable for Wanda’s injuries?
Rule:
Generally, negligence =
(1) harm (2) proximately caused by (3) breach of (4) duty of care
Generally, partners are jointly & severally liable for each other’s negligence.
Analysis:
Here, the elements of negligence are present (list facts, e.g. breach = distracted driving)
Here, as explained previously, the elements of an implied partnership are present.
Conclusion:
Therefore, Dave (not just Sue) may be liable for part of all of the harm caused by Sue.
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Alpaca Dave, Part 4
Alpaca Dave and Sue part ways.
Alpaca Dave decides he wants to limit his personal liability.
He goes online immediately, pays a fee, and creates a business form immediately.
Profits from his business activity will be taxed just once, as if they were his personal income.
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Model answer:
Issue:
What kind of a business does Dave have?
Rule:
Generally, an LLC is a commonly chosen immediate “best of both worlds” option
(that is easily formed and taxed once, yet provides personal liability protection)
Analysis:
Here, we are told that the business is formed immediately and income taxed once, yet it provides personal liability protection
Conclusion:
Therefore, Dave very likely formed an LLC.
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