Questions from Business Law

Q: George Gibbons, William Smith, and Gerald Zollar were all shareholders

George Gibbons, William Smith, and Gerald Zollar were all shareholders in GRG Operating, Inc. (GRG). Zollar contributed $1,000 of his own funds so that the corporation could begin to do business. In e...

Q: Gay’s Super Markets, Inc. (Super Markets), was a

Gay’s Super Markets, Inc. (Super Markets), was a corporation formed under the laws of the state of Maine. Hannaford Bros. Company held 51 percent of the corporation’s common stock. Lawrence F. Gay and...

Q: John A. Goodman was a real estate salesman in the state

John A. Goodman was a real estate salesman in the state of Washington. Goodman sold to Darden, Doman & Stafford Associates (DDS), a general partnership, an apartment building that needed extensive ren...

Q: Fruehauf Corporation (Fruehauf) is engaged in the manufacture of large

Fruehauf Corporation (Fruehauf) is engaged in the manufacture of large trucks and industrial vehicles. The Edelman group (Edelman) made a cash tender offer for the shares of Fruehauf for $48.50 per sh...

Q: Angela, Yoko, Cherise, and Serena want to start a

Angela, Yoko, Cherise, and Serena want to start a new business that designs and manufactures toys for children. At a meeting in which the owners want to decide what type of legal form to use to operat...

Q: Christopher, Melony, Xie, and Ruth form iNet.com

Christopher, Melony, Xie, and Ruth form iNet.com, LLC, a limited liability company. The 4 members are all Ph.D. scientists who have been working together in a backyard garage to develop a handheld wir...

Q: Southland Corporation (Southland) owns the 7-Eleven trademark and

Southland Corporation (Southland) owns the 7-Eleven trademark and licenses franchisees throughout the country to operate 7-Eleven stores. The franchise agreement provides for fees to be paid to Southl...

Q: Edward Hellenbrand ran a comedy club known as the Comedy Cottage in

Edward Hellenbrand ran a comedy club known as the Comedy Cottage in Rosemont, Illinois. The business was incorporated, with Hellenbrand and his wife as the corporation’s sole shareholders. The corpora...

Q: M.R. Watters was the majority shareholder of several closely

M.R. Watters was the majority shareholder of several closely held corporations, including Wildhorn Ranch, Inc. (Wildhorn). All these businesses were run out of Watters’s home in Rocky Ford, Colorado....

Q: The Medical Committee for Human Rights (Committee), a nonprofit corporation

The Medical Committee for Human Rights (Committee), a nonprofit corporation organized to advance concerns for human life, received a gift of shares of Dow Chemical (Dow) stock. Dow manufactured napalm...