Assignment Task: 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.
Analyze the forms of bankruptcy available to the business in this instance (assume LLC). What form is most appropriate and why?
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 =LLC). Explain which, if any, are subject to forced sales, liens, or forfeiture.
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 = LLC).
Explain if the assets of business owners are subject to forced sale, liens, or forfeiture.
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?