Discuss the strength of a potential lawsuit


Assignment task 1: WB Inc. is a corporation in the (fictional) state of Carey. The corporation's primary line of business is the manufacture and sale of wheelbarrows. In an effort to expand the business internationally, WB's CEO, Bob Boss, promotes one of WB's sales employees, Sam Shady, to a newly created, highly compensated position of vice president for international sales. Dan Disgruntled, another salesperson, believes that he should have received the promotion because he is better qualified and has consistently outperformed Sam. Dan further believes that Sam got the promotion because Sam is Bob's son-in-law. Dan sends a letter to the company's Board of Directors criticizing the CEO's decision. The Board takes no action in response to Dan's letter, and Bob immediately terminates Dan from his job.

QUESTION 1: Does Dan have a viable claim against WB, based on (a) not getting the promotion, and/or (b) getting fired. Explain your answer.

Assume that Sam spends a lot of company resources building up an international sales office but brings in very little new business. The Board eventually terminates Bob from the CEO position, and the new CEO fires Sam and shuts down the international sales office, causing a substantial hit to the company's finances.

QUESTION 2: Do the corporation's shareholders have any recourse against Bob, or the Board, for the failed decision to promote Sam to the international sales VP position? Explain your answer.

Assignment task 2: "Chicken Barn" is a trademark, owned by FF Corporation, for a chain of fast food restaurants serving a variety of chicken dishes. Lickety Corporation owns a Chicken Barn franchise in Rockville, Maryland. Lickety Corporation's franchise agreement with FF Corporation contains very detailed terms governing how the restaurant must be operated. Joe Bystander is injured in the restaurant by an employee of Lickety Corporation, who negligently splashes Joe with caustic chemicals that the employee was using to mop the floor of the restaurant.

QUESTION 1: Discuss the strength of a potential lawsuit by Joe against (a) the negligent employee, (b) Lickety, and/or (c) FF Corp.

Upon learning of the incident, FF Corporation terminates the franchise agreement with Lickety Corporation.

QUESTION 2: Does Lickety have any potential recourse against FF for the termination of the franchise? Explain your answer, including a discussion of any additional information that could be relevant to this issue.

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Business Law and Ethics: Discuss the strength of a potential lawsuit
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