Written Assignment #3: Kyle took your advice and decided not to spend the money to fight for his claim to “KFC.com” as the domain name for his new product line, Kyle’s Fiery Condiments. Kyle, however, does want to continue the move of his business, Alabama Sunshine, to the next level of operations. His produce marketing efforts in Hamilton and surrounding areas in Alabama and into Mississippi and Tennessee have proven to be very successful. He now wants to expand to other choice locations in areas that he likes to visit, namely the beach and resort areas along the Gulf Coast of Alabama and Florida between Mobile, AL, and Panama City, FL. Kyle has found a possible location to construct a new store in Fairhope, AL. The property is owned by Sam. Since Kyle’s business is successful and people throughout Alabama and abutting States know of Kyle and of Alabama Sunshine, Kyle hires Agnes to contact Sam, negotiate a price, and, if possible, buy Sam’s property. Concerned that, if Sam knows that he (Kyle) wants the location, the price will increase, Kyle instructs Agnes to not tell Sam that she is working for Kyle. During negotiations with Sam, Agnes realizes that Sam’s property is a good deal, an exceptionally good deal, and buys the property for herself, not Kyle as agreed. Kyle is angry, very angry, and wants to know what he can do.
Respecting your knowledge of business law, Kyle comes to you for advice. What are the issues and how would you advise Kyle? During the conversation, Kyle mentions that Alabama Sunshine is operated as an informal partnership between himself and his uncle, who has pretty much retired from management of the business. He asks you about the advantages and disadvantages of a partnership and whether he should change the business to some other business structure. If so, which one would be the most advantageous? In passing he notes that the farm worker that he refused to hire back during the peak season (remember WA1) has now filed an employment discrimination (national origin) charge against him personally and against Alabama Sunshine and Kyle wonders what the procedure is for such charges.
Note: As with all Written Assignments, WA3 has a point value of 25 points. This is to be your own work with no help offered, given, or accepted, unless you so state, as per our Class Code of Honor.
To help you organize your thoughts, I suggest that you read the fact set; decide which facts are relevant and which are merely verbiage; based on the information in Unit 3; decide which legal information is relevant to the facts; then state the legal issue (relevant facts), state the general rule of law that applies, apply the law to the facts and then go to the next legal issue.