Problem:
Read Guth v. Loft, Inc. in Chapter 43 of your textbook. Red swivel stools, green counters and mirrors on the back wall typified the soda fountains that were prevalent features in American society from the 1930's to the early the 1970s. Soda syrups were added to carbonated water at the soda fountain; the drinks sold for 5 and 10 cents. Loft owned some of those stores and also had large manufacturing facilities where it manufactured syrups for its candy business. Guth (president and general manager of Loft) bought Pepsi's secret formula for its syrup and trademark for $10,000, acquiring 91% of the capital stock for himself.