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Posted on May 1st, 2014, by

Facts

Chef R’s Scetch Café expands business but the expansion of business raises the problem of the ownership and for of business, legal requirements concerning building, contract law issues, employment laws, intellectual property rights and other legal norms.

Issues

The major issues that arise in the case of Chef R refer to the possible discrimination of employees in the course of employment, violation of Chef R’s intellectual property rights, ethical issues, legal issues related to building and reconstruction, contract law issues, and ethical issues, such as Chef’s human resource policies and internal business relations.

Discussion

Chef R should define clearly prospects of his business. If he is going to be the only owner of his business, the LLC is the best option for him because LLC provides him with the limited liability that means that, in case of troubles his private property will remain secure, while the legal liability of the business will be limited to the ownership and property of the business solely, i.e. restaurant. If Chef R. plans to expand his business and share ownership with other individuals, the corporation is better because each owner shares his/her liability as well as profits in terms of their share in ownership of the business (Poole, 195). Therefore, at the moment, LLC is the best option for Chef R but, if he plans to involve partners, the corporation will be better.

Chef R should take into consideration legal requirements concerning building and reconstruction of buildings along with requirement to public safety and accessibility of public areas, while expanding his café. In this regard, Chef R has to contact the Community Development (Building and Planning) department to coordinate his plans of the reconstruction of the building. In addition, he should coordinate his work with the Community Services department (Parks, recreations and childcare) because the reconstruction will expand on the sidewalk that may affect the infrastructure and recreation areas of the city. Furthermore, Chef R should contact the Fire Department and Parking Services department because sidewalks should be safe and provide the access for emergency services, namely the fire department services (Poole, 150). In addition, the expansion of the facility on the sidewalk and the reconstruction may affect parking lots in the local area that needs the coordination with the Parking Services department.

Furthermore, the agreement of Chef R with Sharon cannot be viewed as a legally binding contract. Even though the contract is written and signed, this agreement is not valid as a legally binding contract because the consideration element of the legally binding contract was missed. In fact, Sharon did not have reasonable time to consider the contract, while her condition (she was under the impact of alcohol intoxication) does not provide her with the opportunity to consider the offer of Chef R. In addition, the legally binding contract related to real estate agreements should have not only signatures but also seals to prove the legal status of the deal and to make the contract legal.

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