Entrepreneurial banking dilemma- sole proprietorships
Read the entrepreneur’s dilemma and the questions that
follow. Identify the legal issue(s) and apply legal concepts and possible
arguments for each question. Prepare a solution for each question using laws,
cases, examples and/or other relevant materials. Identify potential ethical
issues and propose a solution for each issue. Support your answers with
information from the textbook and at least two outside scholarly sources.
prepare a 6 to 9 page paper that identifies the legal issues and potential
solutions and answers all questions presented, supported by relevant legal
authority. Properly cite all sources using APA format.
The Dilemma
Lauren started a new business, Critter Sitters, a sole
proprietorship, that includes walking, feeding, grooming, training and
providing other services for pets while their owners are out of town or unable
to care for them due to illness or long work hours. In addition to her
business, Lauren currently attends college part time.
One of Lauren’s new customers leaves her a check for $120,
made payable to Lauren and signed by her customer. Lauren takes the check to
the bank after she completed the services and found that the bank had issued a
stop payment on the check. What are Lauren’s options?
Lauren places an online order for $750 in training supplies
from Pet Wholesale Warehouse (PWW). Lauren acknowledges the terms and
conditions, provides her credit card information and selects FedEx to deliver
the goods. She does not purchase any additional insurance. FedEx delivers one box
containing a dog crate valued at $35, but does not deliver the remaining boxes.
Since Lauren is a student, she does not have much capital
and seeks to save money where she can; therefore, she only uses one bank
account for her personal and professional funds. Lauren frequently monitors her
account using the online portal furnished by her bank. On Friday night, Lauren
noticed that $451.43 had been withdrawn from her account on two separate
occasions that day. Lauren knows that she did not spend that amount of money
one time, much less two times in one day. She is afraid that someone has
accessed her account. Assume that the following Monday is a holiday and banks
will be closed; however, one branch will be open for four hours on Saturday. On
Saturday morning, Lauren discovers a check for $93.52 cleared the bank. She is
able to view a copy and sees that the check was written using another party’s
name and address, yet the bank account number belongs to her.
Assignment:
Based on the different situations described in the scenario,
create a 6 to 9-page Microsoft Word document that includes the answers to the
following questions:
1.What are Lauren’s options for operating her business?
Select the type of business organization you believe is best for Lauren and provide
support for your choice.
2.What are Lauren’s options related to the stop payment on
the customer’s check?
3.What are Lauren’s options related to the undelivered
goods?
4.What course of action would you advise Lauren to take on
Friday night and/or Saturday morning? Will Lauren be liable for the moneys
withdrawn from her account? Explain why or why not.
5.According to your text, what laws govern business and
consumer banking transactions? Provide a short summary of how the law(s) affect
Lauren.
6.Identify and explain any ethical concerns Lauren may face
related to the topics covered.
7.Conclude your paper by providing suggestions for Lauren to
help prevent future occurrences of these types of legal and ethical problems.
Support your answers with appropriate research, reasoning,
cases, laws, and other relevant examples.
APA format and properly cite sources on a separate page
using APA.
