Disney Scoping Report of San Jose

This report provides an overview of the legal systems, workplace laws, consumer laws, tax laws, and registration requirements in San Jose, California for Disney Company's planned expansion.

INTEGRATED BUSINESS CHALLENGE 1
Integrated Business Challenge
Professor
Name
Date

INTEGRATED BUSINESS CHALLENGE 2
DISNEY SCOPING REPORT OF SAN JOSE
San Jose is a city located in California. It is the third largest city, by population. The city is
located within Silicon Valley; as such it prime for business. It is vital for the survival of a
company that it understands the State/municipal of any region they so wish to expand to. Matters
such as taxation and labor law different from jurisdiction to jurisdiction and ignorance of these
laws may result in a heap of legal troubles for the company.
1) International Legal Systems
There exists various international legal instruments that provide various rights and obligation
that companies (most especially large companies such as Disney) are expect to uphold.
With regard to employment, the Universal Declaration of Human Rights, which the United
States is a signatory, provides that all persons have the right to equal and fair remuneration, good
working conditions and the right to form and join trade unions (International Declaration of
Human Rights, 1948, Art. 23(1,2,3 and 4). The International Convention on the Elimination of
All Forms of Racial Discrimination, while acknowledging the principles laid out in the UDHR
(The International Convention on the Elimination of All Forms of Racial Discrimination, 1965
Art. 4), continues to provide for the same rights as highlighted above (The International
Convention on the Elimination of All Forms of Racial Discrimination, 1965 Art. 5(i and ii), and
that all worker are protected from all forms of racial discrimination (The International
Convention on the Elimination of All Forms of Racial Discrimination, 1965). These two
instrument obligate States to create laws that protect employees.

INTEGRATED BUSINESS CHALLENGE 3
2) National and State/Municipal law
a) Workplace laws
As a result of the above obligations, the United States has passed several laws that impact the
rights of workers. Laws provide for equal pay (The Equal Pay Act, 1963), minimum wage and
working hours (Fair Labor Standards Act, 1938) and the prevention of discrimination (Civil
Rights Act, 1964, Title 4). With regard to occupational safety, the law requires employers to
ascertain that they provide their employees with a safe working environment (Occupational
Safety and Health Act, 1970, Sec 7).
On the State level, California Law requires that an employee’s standard length of work is 8
hours a day. Anything over this is regarded to as overtime and the law requires that the employer
pays accordingly (Upcounsel, 2019).
b) Consumer laws
With regard to matter of investment, Disney Company is bound to disclose its financial
information to all investors (Securities Act, 1933). With a planned expansion, the company will
be looking for investors, hence it must disclose all its financial information for this purpose.
Consumers are protected from unfair and deceptive representation under California State law
(Upcounsel, 2019). As such it is imperative that in its efforts to attract consumers, Disney present
to the people of San Jose only that which is factual.
c) Tax Laws
San Jose requires that all business pay taxes. Taxation can be based on a number of factors
including number of employees (Sanjoseca.gov, 2019). At the state level, every corporation
conducting business in California is liable to income taxation of 8.84 percent (Ftb.ca.gov, 2019).

INTEGRATED BUSINESS CHALLENGE 4
d) Registration
San Jose law requires that all businesses be registered and obtain a business tax certificate for
tax purposes as highlighted above (sanjoseca.gov, 2018). There are also other licenses that an
organization may be required to attain before commencing business.
3) Conclusion
San Jose’s location makes it an ideal place to conduct business. Its scenic landscape makes it
perfect for the magic-oriented company. Disney, having its headquarters in California, is already
familiar with the laws of the State but what is imperative for a profit-driven company is the laws
relating to tax. San Jose’s tax laws do seem to require quite a high tax levy as opposed to many
other locations in the country but its location means that the profit potential should be great
enough to tackle this issue.
It would be my recommendation that before commencing business, Disney Company first
assess its profit projections and weigh the same against the costs attached to such a venture. The
laws as discussed relating to payment favor the workers mire than the employer. Should the
company opt to proceed then I would recommend that it attains all the relevant licenses and
approvals first.

INTEGRATED BUSINESS CHALLENGE 5
REFERENCES
Ftb.ca.gov. (2019). C Corporation | California Franchise Tax Board. [online] Available at:
https://www.ftb.ca.gov/businesses/Structures/C-Corporation.shtml [Accessed 30 May 2019].
International Declaration of Human Rights. (1948), Art. 23(1, 2, 3 and 4. Available at:
https://www.ohchr.org/en/udhr/documents/udhr_translations/eng.pdf [Accessed: 30th May 2019].
International Convention on the Elimination of All Forms of Racial Discrimination (1965)
Art. 4. Available at: https://www.ohchr.org/Documents/ProfessionalInterest/cerd.pdf [Accessed:
30th May 2019]
International Convention on the Elimination of All Forms of Racial Discrimination. (1965)
Art. 5(i and ii). Available at: https://www.ohchr.org/Documents/ProfessionalInterest/cerd.pdf
[Accessed: 30th May 2019]
International Convention on the Elimination of All Forms of Racial Discrimination. (1965).
Available at: https://www.ohchr.org/Documents/ProfessionalInterest/cerd.pdf [Accessed: 30th
May 2019]
Occupational Safety and Health Act, (1970), Sec 7. Available at:
https://www.osha.gov/Publications/OSH-ACT-reprint-3-09-04.pdf [Accessed: 30th May 2019]
Sanjoseca.gov. (2019). San Jose, CA - Official Website - Business Tax Rates. [online]
Available at: http://www.sanjoseca.gov/index.aspx?NID=1155 [Accessed 30 May 2019].
Sanjoseca.gov. (2018). San Jose, CA - Official Website - Business Tax & Registration.
[online] Available at: http://www.sanjoseca.gov/businesstax [Accessed 30 May 2019].
Securities Act (1933). Available at: https://legcounsel.house.gov/Comps/Securities%20Act
%20Of%201933.pdf [Accessed: 30th May 2019]

INTEGRATED BUSINESS CHALLENGE 6
The Equal Pay Act (1963). Accessed at: https://www.eeoc.gov/laws/statutes/epa.cfm.
[Accessed 30th May 2019]
UpCounsel. (2019). CA Labor Laws | UpCounsel 2019. [online] Available at:
https://www.upcounsel.com/ca-labor-laws [Accessed 30 May 2019].
APPENDIX A

INTEGRATED BUSINESS CHALLENGE 7
San Jose Tax Projections
The 3 Year tax projections reveal a small increase. This may be as a result of increase in
taxation or increase in the tax pool.
APPENDIX B
PROJECTED MINIMUM WAGE – CALIFORNIA

INTEGRATED BUSINESS CHALLENGE 8
2017 $10.00 $10.50
2018 $10.50 $11.00
2019 $11.00 $12.00
2020 $12.00 $13.00
2021 $13.00 $14.00
2022 $14.00 $15.00
2023 $15.00 Based on CPI
Year 1-25 employees 25+ Employees