One of the most common ways in which business managers are involved with business law is in relation to contracts. Organizations of almost any size will most likely need to create, negotiate, review, approve, adhere to, and resolve conflicts associated with contracts. A business determines its legal standing by determining what type of legal entity it should be identified as. The type of legal entity can significantly impact how contracts are handled, as well as how they are interpreted by the courts.
By successfully completing this assessment, you will demonstrate your proficiency in the following course competencies and assessment criteria:
- Competency 2: Evaluate the role of contracts in commercial transactions.
- Analyze contract creation and negotiation for the most common types of business entities.
- Analyze contract approval for the most common types of business entities.
- Competency 4: Evaluate legal options to create a business entity.
- Analyze contract liability for the most common types of business entities.
- Analyze how choosing among the most common types of business entities affects the ability to sell a business.Suggested Resources
The following optional resources are provided to support you in completing the assessment or to provide a helpful context. For additional resources, refer to the Research Resources and Supplemental Resources in the left navigation menu of your courseroom.
Click the links provided below to view the following multimedia pieces:
. Throughout this course, you will be required to submit case law analysis papers. This multimedia presentation points out key areas of a case law. Use this presentation to help you complete your case analyses. Refer to this media as often as you need to.
. This media piece offers interactive flashcards that you can use to learn (or review) foundational terms and concepts in business law. Refer to this study aid often and as needed.
The following e-books or articles from the Capella University Library are linked directly in this course:
· DuBoff, L. D. (2004). The law (in plain English) for small business . Naperville, IL: Sphinx Publishing.
Course Library Guide
A Capella University library guide has been created specifically for your use in this course. You are encouraged to refer to the resources in the BUS-FP3021– Fundamentals of Business Law Library Guide to help direct your research. Pay particular attention to the Capella University Library Legal Research Library Guide linked within.
Access the following resources by clicking the links provided. Please note that URLs change frequently. Permissions for the following links have been either granted or deemed appropriate for educational use at the time of course publication.
· Nolo. (2013). Nolo law for all . Retrieved from http://www.nolo.com
. This resource provides helpful background on a range of legal issues. You may find the Free Legal Information section of the site particularly helpful.
The resources listed below are relevant to the topics and assessments in this course and are not required. Unless noted otherwise, these materials are available for purchase from the Capella University Bookstore. When searching the bookstore, be sure to look for the Course ID with the specific –FP (FlexPath) course designation.
· Miller, R. L., & Cross, F. B. (2018). The legal environment of business: Text and cases (10th ed.). Boston, MA: Cengage.
For this assessment, consider that you work as a manager in a relatively small, privately-owned business. The company president (who is also the owner) inherited the company from his father, and thus has never started a business. He is considering creating a spin-off business (possibly with one or two associates), but is unsure of which type of business entity would be best to use for that new business. The new business will be utilizing numerous suppliers and distributors, and thus contracts will play a major role in the success of the business. The president knows you took a university-level business law class, and asked you to put together a paper analyzing the four most common business entities in the context of contracts to help him decide what to do.
Research each of the following types of business entities:
· Sole proprietorship.
· Limited liability company (LLC).
Consider potential factors and issues associated with each of these types of business entities in the context of contract law. Write a paper analyzing the following for each of the above four types of business entities:
· Who in the business entity would typically create and negotiate a contract? Explain the pros and cons of each entity in this context.
· Who in the business entity would typically approve and sign a contract? Explain the pros and cons of each entity in this context.
· Who in the business entity would have liability associated with the contract? Explain the pros and cons of each entity in this context.
· What are the effects of the type of business entity on the ability to contract for the sale of the business? Explain the pros and cons of each entity in this context.
Based on your executive audience, your executive briefing should be no more than three pages, and should be well organized and written in clear, succinct language. Follow APA rules for attributing sources that support your analysis and conclusions.
Academic Integrity and APA Formatting
As a reminder related to using APA rules to ensure academic honesty:
1. When using a direct quote (using exact or nearly exact wording), you must enclose the quoted wording in quotation marks, immediately followed by an in-text citation. The source must then be listed in your references page.
2. When paraphrasing (using your own words to describe a non-original idea), the paraphrased idea must be immediately followed by an in-text citation and the source must be listed in your references page.