Exam 36: D: Sole Proprietorships and Franchises

Ilya is an officer with Jetspeed,Inc.Ilya is in a position to acquire assets that would benefit Jetspeed if acquired in its name.Ilya's usurping this opportunity may violate the duty of

Ray-On Corporation makes inexpensive,highly efficient,solar energy cells.A anticipates a change in the demand for its products as a consequence of climate change.According to the Securities and Exchange Commission,Ray-On should

Beyond Gamez,Inc. ,a video game retailer based in California,does business in all fifty states exclusively online.According to New York state tax law,an out-of-state online retailer must collect and remit state taxes to New York if the retailer

Jumbo Juice Inc.offers entrepreneurs the opportunity to operate a franchise under the Jumbo Juice trade name as a member of a select group of dealers that engage in retail juice sales.To potential investors,the franchisor must provide

Rea,an officer with Sel-Mart Company,misappropriates the firm's property through fraud.Later,Rea and Sel-Mart agree to a mutual release of claims.Still later,Sel-Mart discovers Rea's fraud and files a suit to recover the misappropriated property.Most likely,the court will rule that Rea

Simone is a manager of Rolling Hills Resort LLC,a limited liability company.Rolling Hills is formed in a state that does not explicitly create fiduciary duties for LLC managers but does require the exercise of good business judgment.Unless a court rules otherwise,Simone owes fiduciary duties to

Far Afield Inc.announces its intent to acquire Eversmall Company.Despite this announcement,Eversmall's directors do not prepare for a buyout-they do not determine a price or seek out other buyers,and negotiate with Far Afield for only a short time.Former Eversmall shareholders allege that the directors breached their fiduciary duties.The directors' best defense is