Mickey Bullets, age 32, and Sam Superstar, age 33, were eating dinner one night in the food court of their local mall in Anytown, USA. They began talking about starting a business where they would hire tour guides for various parts of the city to give culinary and historical tours of Anytown, USA. The tour guides would be paid by Mickey and Sam’s business in cash for each tour that Mickey and Sam arranged. The tour guides could receive cash tips from the tourists as well. They called Barrett, a well-known local tour guide, to see if he would be willing to give tours for their new business. Mickey and Sam decide that the name of their business should be Tours, Tours, and More Tours.
Mickey and Sam have come to your law firm to request legal advice. Answer the questions below in as much detail as possible and include analysis. Remember to analyze all relevant issues.
You must answer each of the questions in short-answer essay format:
1.) Mickey and Sam want to formally organize their business. What business forms would you recommend and why? Analyze all relevant business organization types.
2.) Jessica’s BBQ and Brisket restaurant wants tourists from Mickey and Sam’s tours to stop by their restaurant during every tour. Jessica, the owner of the BBQ and Brisket, is 17 years old at this time. All three parties (Mickey, Sam, and Jessica) verbally agree that each tour will stop by the BBQ and Brisket restaurant for a small fee of $50. Mickey and Sam want you to draft a short four- to five-sentence contract for Jessica, Mickey, and Sam to sign. Draft the contract and advise Mickey and Sam on any potential issues that might arise in reference to this contract.
3.) Mickey and Sam want to expand to other cities, hire employees, and raise capital for their growing business. Explain what you would recommend that they do at this time to achieve their business goals and why?
4.) Mickey has decided to raise capital in a different way. He meets with various investors and promises them a 10% return on their investment in 3 years if they will invest $100,000 in the Tours, Tours and More Tours business. Mickey meets with eight investors, and they each give him a $100,000 investment within one week. Sam is concerned about these investments. Sam has come to you for advice. Sam asks you, “Is Mickey committing any crimes when he meets with these investors and promises them returns on their investments?” How would you respond? Explain your answer.