Case Study 3 Both Fred’s family and the business have rebounded from their prior issues. Jane sought counseling for her gambling issues and has worked hard to mend her relationships with the family. Prior to cashing the forged checks from Jane, Don was struck by lightning and experienced a spiritual enlightenment. He willingly returned the checks to Fred and Sally and promptly joined the Peace Corps. Likewise, when the church found out the donated check was a forgery, it was immediately returned. Bob’s wife (also Sally’s best friend) found out about Bob’s online sabotage and promptly remedied the situation. Once Fred’s Miracle Cough Syrup was back on track, the company’s growth was exponential. Featured on a widely viewed talk show starring a prominent doctor, online orders and demands from big-box chains nationwide skyrocketed. Fred and Sally have been told that now would be an ideal time to take Fred’s Miracle Cough Syrup public. The only distressing issue at hand involves Tammy, a local girl who had been working as a delivery girl for the company. She applied for Jane’s former job as bookkeeper. Fred and Sally hired Ted, an experienced accountant, instead, and Tammy has filed a claim of sex discrimination against the company and Fred personally. Fred and Sally are seeking your advice regarding Tammy and the possibility of taking the company public. Complete a legal analysis of the given facts, including the following elements. Specifically, the following critical elements must be addressed:
Please provide sources used as well so I may go read them and study more.
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[i] An Initial Public Offering [PO] is an organization offering its stock to people in general just because with the business going from exclusive to one claimed by open investors. One bit of leeway of an IPO is access to open capital since it doesn't need to be reimbursed and can assist organizations with purchasing truly necessary supplies or stock. A weakness of opening up to the world is the time included in light of the fact that it takes two years to finish the IPO procedure.
For a business to get public, a business must apply with the Securities and Exchange Commission [SEC]. The way toward opening up to the world takes two years with the initial step being to enlist a guarantor, which goes about as a middle person between the capital markets and the business.
The SEC expects organizations to completely unveil all their data to the public when the business needs to open up to the world. The data being uncovered to the general population is the depiction of the business, the fiscal summaries, the administration examination, the data on the insiders, and the number of offers by every proprietor. This implies Fred's Miracle Cough Syrup must reveal the past and current lawful issues for the organization. It is to help avert public misrepresentation by educating the speculators about the dangers included when putting resources into the organization.
There are three issues that hold up the traffic of Fred and Sally which would affect Fred's Miracle Cough Syrup opening up to the world.
[ii] Fred's Miracle Cough Syrup is in compliance with government regulations involving public offerings by analyzing relevant laws -
[A] Sexual Discrimination - Consequently, Tammy recording a case of sexual discrimination on the organization and Fred by and by will affect the general public offering since it could prompt a claim against the organization and Fred. The organization should reveal this data to open up to the world on the grounds that the SEC makes them educate the public population concerning the organization's lawful activities. It assists financial specialists with settling on an educated choice on whether they ought to contribute by telling them about the legitimate issues the organization is confronting. The negative effects could be consumers not purchasing the item and financial specialists not contributing. This implies the business would not make a benefit or raising the truly necessary funding to grow the business. The activities that should be possible to help Fred demonstrate there was no inappropriate behavior occurring are researching the case and demonstrating Tammy was not equipped for the activity. Fred ought to host the third gathering examine the case of lewd behavior since it takes into consideration a reasonable examination concerning whether the case is valid. Fred should demonstrate Tammy was not equipped for the activity by indicating the measure of experience she has with accounting. It demonstrates there was no inappropriate behavior by Fred taking deterrent measures with researching the case and enlisting the individual who had the most experience for the activity.
The legitimate protections Fred should take to demonstrate there was no sexual discrimination that happened are indicating he speedily remedied the conduct and Tammy neglected to make the most of the redressed open doors offered by the business. Fred's examination shows he paid attention to the case and revised the pestering conduct. Fred should show Tammy had no past protests against the organization and himself while she filled in as a convey driver. This demonstrates there was no lewd behavior since Tammy knew the inappropriate behavior arrangement and neglected to make the most of the rectified opportunities offered by the business.
[B] Forging Checks - Despite the fact that Jane looked for directing for gambling propensities and attempted to change her associations with the family, regardless it impacts people in general advertising. The SEC expects organizations to discharge their budget reports to people in general, which will show the counterfeiter of the checks to Don and the congregation. It makes financial specialists question whether they ought to put resources into the organization. Jane's falsifier of the checks and her activities could prompt financial specialists taking their cash somewhere else in light of the fact that speculators will need clarification with respect to why the organization permits this kind of conduct. This implies the organization could lose the truly necessary capital for growing the business and purchasing supplies.
[C] Online Damage - Moreover, the online harm from Bob will affect people in general offering in light of the fact that the organization needs to report any patent encroachment against the organization. The negative effects will be customers not purchasing the item and financial specialists not having any desire to contribute. The purchasers won't purchase the item on the grounds that the formula was online for a while, which enabled them to have the option to record the formula and make it all alone. This would prompt a drop in deals on the grounds that the purchasers will have no requirement for the item any longer. The speculators see this drop in the benefits and don't contribute on the grounds that they will be no benefit for them to make an arrival on their venture.
Fred's organization should enlist with the Securities and Exchange Commission to have the option to open up to the world. The SEC will explore the organization's monetary conditions, business activities, and administrations. This will take into consideration the SEC to decide if to endorse the organization to open up to the world. When affirmed by the SEC, the organization will mark the calendar to open up to the world and enable speculators to buy the stocks. The state protections law likewise know by "blue sky" laws are the states who center on whether the organizations have uncovered to speculators the data need to settle on educated choices on purchasing the stock. Fred's Miracle Cough Syrup will be in consistence with government guidelines including open contributions once affirmed by the Securities Exchange Act of 1934 and consents to the state protections laws in light of the fact that the organization will have uncovered all the money related data, business tasks, and how the organization deals with the business.
[iii] Recommendations –
The suggestions to improve consistency for Fred's Miracle Cough Syrup are setting up benchmarks, following the guidelines set by the SEC, and building up strategic approaches. The setting up of measures will show that the organization is running viably by consistently refining the business tasks, for example, duty and staff exhibitions. The organization should pursue the guidelines set by the SEC when the organization opens up to the world on the grounds that the financial specialists should have all the data to settle on an educated choice about putting resources into the organization. The building up of strategic approaches for the organization will assist them with developing by improving the general execution, evacuating vulnerabilities, and demonstrate to clients the firm can be trusted to convey on guarantees.
At long last, the procedures for corporate development are streamlining the frameworks, putting resources into new innovation, and inclining to partners. The streamlining frameworks imply utilizing one data framework. It assists with corporate development since all the data is on one spot making progressively proficient to perceive how well the organization is performing. Putting resources into new innovation considers the organizations to develop in light of the fact that forward-thinking projects will assist keep with following the money related records and business tasks. This implies they will be maintained the business all the more effectively in light of the fact that they can look into how a lot of obligation they owe or the all outnumber of benefits the organization has. Tuning in to partners will enable the organization to develop in light of the fact that discovering what they expect and conveying on it takes into consideration effective association. It shows the partners the organization's minds enough to tune in and stays faithful to their obligations.
Case Study 3 Both Fred’s family and the business have rebounded from their prior issues. Jane...
For this case study, craft a professional memo, appropriate in format, tone, and content, to send to your clients Fred and Sally, with your preliminary thoughts on the issues within. Your memo should illustrate the issues and relevant law, apply the facts, and support your conclusions with regard to each issue. Always remember to be clear, kind, and professional in your communications. Case Study 1 Fred is well known in his town for his homeopathic cough syrup. After years of...