BUS 206 Business Law: Analyzing Legal Cases and ADR Methods

This assignment presents solutions to three business law case studies. The first case involves jurisdiction, alternative dispute resolution (ADR) methods like mediation and arbitration, and ethical decision-making related to a contract dispute. The second case examines contract law principles, quasi-contracts, promissory estoppel, and landlord-tenant rights, focusing on a dispute over property use. The third case delves into different types of business entities—sole proprietorships, partnerships, and corporations—analyzing the advantages and disadvantages of each, with a specific focus on partnership liabilities and asset protection. The document is available on Desklib, a platform offering a wide array of study tools and solved assignments for students.

Running head: BUSINESS LAW
Business Law
Name of the Student
Name of the University
Author Note

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BUSINESS LAW
1. Rule of jurisdiction: As per the contract signed between Novelty Now and the three men,
it is clear that all disputed need to be brought in the state of Florida, therefore, Margolin
has to file the case in Florida.
2. The two types of ADR are mediation and arbitration. Arbitration is mostly mentioned in
the agreement and agreed between the parties, whereas parties may decide to enlist a
mediator. Both are cost effective techniques which are impartial and neutral (Donaldson,
2014). Though mediation is inexpensive and fast, there are chances that an agreement
will not be reached and eventually parties have to go to court. In arbitration, the award by
the arbitrator is binding leaving no scope for appeal. Weighing the two, mediation is a
better option (Meyerson, 2015).
3. Novelty Now and Funny Face will choose mediation because arbitration is not mentioned
in their contract as the ADR. Margolin will select Arbitration because it is neutral and
there will be lesser chances of bias.
4. Corporate is a separate legal entity and hence can be made liable for criminal acts.
5. Using low cost emulsifier is a potential criminal act.
6. Using low cost emulsifiers which is not FDA approved knowing very well that the
chemicals used are not upto the mark makes the parties liable.
7. The three principles of ethical decision making are-utilitarianism, collective interest and
personal virtue.
CASE STUDY TWO
1. Sam and the chain store never signed an agreement and for a contract to be valid
consideration is mandatory and in this agreement, there is no consideration.

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2. Quasi contract is when the plaintiff delivers valuable goods with the expectation of being
compensated (Winkler, 2015). Promissory estoppels are when the promisor after making
a promise cannot go back on his words. Neither principle will apply because there is no
breach of contract resulting in any loss.
3. Rights and duties of the landlord can be summed up as Possession, habitable condition
and non-intereference. The rights and duties of the tenant are to pay the rent, not cause
damage, not use the premises for illegal purpose.
4. The tenant cannot use the property for his profit without license and cannot use the
premises for unlawful activities. Based on that, Sam was suing the property which led to
people getting scared, hence, the eviction is justified
5. Sam might say that landlord was aware of Sam’s invention and had wished him luck
giving him the hope that he had no objection, therefore, he cannot evict now.
Case study three
1. Types of business entities are: Corporations, Partnerships, Limited Liability Companies,
Sole Proprietorship (Ellis, 2016).
Advantages and disadvantages:
Sole Proprietorship: easy to set up and register but owner has unlimited legal liabilities.
Partnership: easy to form but partners do not agree unanimously.
Corporations: owners are not personally liable but rule of double taxation applies.
The nature of Arcadia is partnership because two people have come together to form it
and are both personally liable.
2. Under partnership, both the parties are liable to pay damages.

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3. In Partnership, the general partner has no asset protection The Creditors face tax
penalties. Jeb’s personal creditors can seize the assets and profits of Arcadia Sports.

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Reference
Donaldson, L. (2014). Alternative dispute resolution. ADR, Arbitration, and Mediation, 91.
Ellis, P. (2016). To find a standard format that measures the activities of a Micro, Small or
Medium Business Entity. A Pitch. Accounting and Management Information
Systems, 15(2), 420.
Meyerson, A. L. (2015). Alternative Dispute Resolution. GPSolo, 32, 6.
Winkler, J. T. (2015). The corporate economy: theory and administration. In Industrial Society
(Routledge Revivals) (pp. 43-58). Routledge.