Legal and Ethical Scenarios

Select two of the  scenarios provided below. Analyze the facts in the scenarios and develop  appropriate arguments/resolutions and recommendations. Support your  responses with appropriate cases, laws and other relevant examples. Do not copy the scenarios into the  paper.

Cite your sources in APA format on a separate page. 

Scenario 1—Bankruptcy

Rusty Weaver, a project manager for the  Tipton Machinery, filed a petition in bankruptcy under Chapter 7,  seeking to discharge $75,000 in credit-card debts and $45,000 in student  loans.  Weaver’s wife died and left him with two children, Paul, who  attended college, and Diana, who was thirteen years old.  According to  Weaver, Diana was an “elite” swimmer who practiced ten to fifteen hours a  week and placed between first and third at more than thirty competitive  events. Diana was homeschooled with academic achievements that were  average for her grade level.  His petition showed monthly income of  $5,325 and expenses of $5,200.  The expenses included annual homeschool  costs of $8,200 and annual swimming expenses of $5,000.  The expenses  did not include college costs for Paul, or airfare for his upcoming  summer trip to Europe, and other items.  The trustee allowed monthly  expenses of $4,227, with nothing for swimming, and asked the court to  dismiss the petition.

• If Weaver qualified for Chapter 7, which debts would be discharged?  Which debts would not be discharged?  Why?
• Using the median income from your state, does Weaver qualify for Chapter 7?
• Should the court grant the trustee’s request?  Does Weaver have other options if the Chapter 7 petition is dismissed?

Explain your answers and support them with relevant scholarly sources.

Scenario II – Organizations and Liability

Vance Armstrong was the sole incorporator  of Triathlon Training Inc., a corporation designed to operate a training  center for triathletes of all ages. The business was incorporated  according to Florida law in January 2015, with Armstrong as the sole  director and shareholder. Armstrong contributed $20,000 of starting  capital, which was just enough to make minor repairs to the property he  purchased for $400,000 with a loan from the bank. The corporation had no  liability insurance. On June 15, 2015, the center opened for business.  Over the next few months, the corporation operated with a profit.

In  July, Armstrong took a two-week vacation in France and used a check  written on the company bank account to purchase his airline ticket. In  September, Armstrong decided to have the pool resurfaced. Because  business had slowed and the corporation’s bank account did not have  sufficient funds, Armstrong wrote a personal check to cover the work.  Armstrong feared he would not make enough money through the winter to  turn a profit, so he decided to work a part-time job selling fitness  equipment as an independent contractor for Bowflex. Armstrong used the  training center’s office phone to make calls, the copy machine for  copies, and the computer for searches. He made a substantial profit,  which was maintained in a third bank account not associated with  Triathlon Training or his personal account.

On April 1, 2016, a  child with a mild learning disability drowned in the pool while training  for the local children’s triathlon. The parents brought a suit for  wrongful death against Triathlon Training Inc. and against Armstrong in  his individual capacity as owner. At the time of the suit, the  corporation had less than $2,500 in its bank account. Because of these  limited funds, the child’s parents hoped to recover most of their  damages directly from Armstrong, who lived in a mansion on the beach.

• Will the parents be successful in holding Triathlon Training Inc. liable for the child’s death?
• What should the parents argue in order to hold Vance Armstrong  liable in his individual capacity? Will the parents prevail? Why or why  not?
• How could Armstrong have protected himself against this type of potential liability?

Scenario III—Insider Trading

During a session with her doctor, Billy  Mooney, Maggie Mason mentioned in confidence the imminent merger of  Walgreens with Rite-Aid. Mason’s ex-husband, Gus Mason, was on the board  of directors at Walgreens. Mooney communicated the information to a  securities broker, Olive Green, who immediately made trades in  Walgreen’s securities for her own account and for her customers’  accounts.

• Did Mooney, Maggie Mason, Gus Mason, or Olive Green engage in  illegal insider trading? Explain the potential culpability of each  party. Include possible civil or criminal penalties for each party.
• Was the conduct of the parties ethical?

**Paper needs to be at least 3-4 pages, with reference page and 100% original, no plagiarism. 

 

"Looking for a Similar Assignment? Order now and Get 10% Discount! Use Code "Newclient"