View the video resource on bankruptcy basics. Then, read Case Study 2 of the final project and respond to the clients in ‘memo’ format, addressing the listed critical elements.?Milesto

BUS 307 Case Study Two Guidelines and Rubric For this case study, craft a professional memo, appropriate in format,

tone, and content, to send to your clients Fred and Sally, with your

preliminary thoughts on the issues within. Your memo should illustrate

the issues and relevant law, apply the facts, and support your

conclusions with regard to each issue. Always remember to be clear,

kind, and professional in your communications

Case Study 2 Fred’s Miracle Cough Syrup has hit the market and become a huge

success with the burgeoning integrative medicine demographic. Per your

advice, Fred has patented his famous concoction and trademarked the

Fred’s Miracle Cough Syrup name and logo. Demand is so high that

Fred and Sally are working full-time on the business. Their children, Sam

and Lilly, and their respective spouses, Jane and Tim, have joined the

company full-time as well. In fact, Fred and Sally have made Sam and

Lilly part owners of the business. Fred, Sam, and Tim handle the

production, sales, and delivery. Sally and Lilly handle the majority of the

administrative and business management tasks, while Jane acts as the

bookkeeper. Sally and Fred are the only authorized signatories on the

corporate account.

Sally and Lilly have been hard at work securing a new production facility

and distribution chain to accommodate an upcoming contract with a

national chain. After locating a large warehouse on several acres, Sally

and Lilly approach their local credit union for a loan. The business has

only one business credit card used to purchase supplies for the

production of Fred’s Miracle Cough Syrup, and there is a small mortgage

outstanding on the family farm. Personal debts of the individual family

members consist of small credit-card balances for Fred, Sally, Sam, and

Lilly as well as an auto loan on Sam’s van.

During the commercial loan accounting review process, Sally and Lilly

discover that Jane has been siphoning off large amounts of corporate

money and “cooking the books” to hide her actions. Jane has written

several checks from the corporate account and forged both Sally’s and

Fred’s signatures. Jane has made out all but one of the forged checks to

Don, a local loan shark, in an effort to repay her gambling debts. The

check Jane did not deliver to Don was made out to “Cash,” which she

slipped into the collection box at church in an effort to absolve her guilt.

The embezzlement was so severe that the family fears that Fred’s

Miracle Cough Syrup is now on the brink of bankruptcy. Meanwhile,

Sam’s refusal to enter into an exclusive distribution deal with the local

drugstore has enraged Bob, the owner. Bob has now reverse engineered

Fred’s cough syrup recipe and has posted it online in an act of

vengeance.

As Fred and Sally tearfully recount the events of the past month, you

reassure them that you are on the case, and you begin to ponder the

legal issues at hand.

Specifically, the following critical elements must be addressed:

1. What legal defenses might Fred and Sally raise with

regard to the checks written by Jane to Don? Why

do you believe they will be successful or

unsuccessful?

2. What legal defenses might Fred and Sally raise with

regard to the check written by Jane and delivered to

the church? Why do you believe they will be

successful or unsuccessful?

3. What, if any, civil claims do Fred and Sally have

against Jane based on her actions? Why do you

believe they will be successful or unsuccessful?

4. Analyze the forms of bankruptcy available to the

business in this instance (assume the business

entity is the same form as you chose in Case Study

1). What form is most appropriate and why?

5. Analyze the implications of a potential bankruptcy

action on the business assets (assume the business

entity is the same form as you chose in Case Study

1). Explain which, if any, are subject to forced sales,

liens, or forfeiture.

6. Analyze the implications, if any, of a potential

bankruptcy action by the business on the assets of

the individual family members (assume the business

entity is the same form as you chose in Case Study

1). Explain if the assets of business owners are

subject to forced sale, liens, or forfeiture.

7. What legal recourse does Fred have against Bob for

infringement of intellectual property rights? Do you

believe he will be successful? Why or why not?

What to Submit Your submission should be a four to seven page memo, double-spaced,

use 12-point Times New Roman font, and follow APA 7th edition format

for layout and citations.