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Posted: May 22nd, 2023
General Instructions for Learning Activities 1 & 2: Please answer each question part in paragraph format using APA in-text citations, as appropriate, from the assigned materials.Create a separate posting for each learning activity, i.e, Label each learning activity with appropriate titles, for example, âLearning Activity 1â and âLearning Activity 2â. Include relevant subject titles and label each question part (e.g., 1.A. or 2.B.) to facilitate discussion.Learning Activity 1:This learning activity focuses on the relationship between franchisor and franchisee.An important issue in a franchise agreement is how much control a franchisor has over the activities of a franchisee. Answer the following questions on this topic. ****************************************************************************************************A.Why would a franchisor want to exercise control over the activities of a franchisee? What are important areas for a franchisor to control?B. What problems are created if a franchisor exercises too much control over a franchisee?C. Late last year the Federal Trade Commission (FTC) settled a case concerning the privacy practices of the Wyndham hotel chain. Hackers had accessed private customer information at three different Wyndham Hotels. The franchise agreement covering these hotels had detailed requirements for securing customer information and required franchisees to use centralized computer systems owned and operated by the franchisor. Discuss the pros and cons of franchisor vs. franchisee responsibility for the security and privacy of customer information.****************************************************************************************************Learning Activity 2:This learning activity focuses on the rules for operating under a corporate form and fiduciary duties.Scenario:John (see learning activity 2, week 7) organized his chemical analysis business as a limited liability company (LLC). He has gotten a lot of business and the LLC is financially strong. Unfortunately, Johnâs personal life has not been going well. His wife became very ill and incurred substantial medical bills. John had to borrow money from the LLC to pay these bills. He paid these loans back promptly and with reasonable commercial interest. John has not yet documented these transactions in writing or entered them into the account books of the LLC. His wife does all the paper work and has been too ill to manage this.John no longer uses the chemical analysis equipment at the local University. Instead, the LLC purchased the equipment and John had it installed at his home where he keeps his office. John now performs the chemical analyses and stores the chemicals at his home. This saves travel time and he can spend more time taking care of his wife. Once his wife is feeling better, she will check into to any licenses or permits needed for operating this equipment and storing these chemicals at their home office.Last week John was expecting a delivery of chemicals for analysis from a large customer. John had to go the hospital and asked a neighbor, Mrs. Smith, to wait at his home and accept delivery of the chemicals. Some chemicals already stored at the home caught fire, emitting noxious fumes that injured Mrs. Smith. Mrs. Smith wants expense reimbursement and damages from both the LLC and John. Various state and federal agencies are also investigating.****************************************************************************************************A. What fiduciary duties does John owe to the LLC? Did he meet these duties? Why or why not?B. Will Mrs. Smith succeed in recovering from both the LLC and John? Why or why not? Can the government agencies impose fines and sanctions on the LLC and John? Why or why not?
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