Analyze and discuss the pros and cons – from a business perspective – of PI choosing Option 1 above and continuing to contract with Naturals.

The project requires you to identify and analyze legal issues and to make recommendations. These issues will relate to the concepts covered in weeks 1-7.

You will also develop skills in writing a memorandum and using critical thinking to write an in-depth comprehensive analysis.

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Outcomes Met by Completing this Assignment:

· analyze contractual rights, obligations, liabilities, and remedies in the business environment

· analyze tort rights, obligations, liabilities, and remedies in the business environment

Background: Things have been moving quickly for the PI owners. They are almost ready to open operations. An important next step is to finalize negotiations to contract with Naturals to purchase paint and paint supplies. PI wants a clause in the contract with Naturals that PI would buy paint and paint products exclusively from Naturals for 3 years. The contract will also include a product description that all paints are zero-VOC.

Recently, PI owners learned that although some of Naturals paint products are zero-VOC, most Naturals paint contains 1-5% VOCs, and thus, are not actually zero-VOC.

Under state and federal regulations, paint products that contain less than 8% VOCs can legally be categorized as a zero-VOC green product. However, PI has already begun advertising and marketing its business and paint as zero-VOC.

Naturals paint products are 15-20% less expensive than other equivalent paint products on the market. PI is unsure whether to continue its plan to contract with Naturals for use of Naturals’ paint. The owners are concerned about possible liabilities for PI if it uses Naturals’ products knowing the products are not zero-VOC paints. PI has again come to BCA for advice.

The PI owners believe they have 2 options regarding purchase of paint products and supplies.

The options are:

Option 1: Continue PI’s plan to sign a contract with Naturals, use Naturals paint under a 3-year exclusive contract, and advertise and market the paint as zero-VOC paint because Naturals paint legally can be categorized as zero-VOC paint under state and federal regulations.

Option 2: Discontinue contract negotiations with Naturals and opt to contract and purchase similarly-priced paints from New Green, Inc., a manufacturer in Mexico. New Green is a new company and one with which PI has no experience. The Mexico company guarantees all its paint are zero-VOC and its paint supplies are chemical-free.

PI has again come to BCA for advice on this matter.

Instructions: Your BCA supervisors, Pat Braden and Gale Roth, have given you the responsibility of researching and analyzing possible legal implications and potential risks and liabilities regarding the decision facing the PI owners about whether to continue buying paint products from Naturals or switch to purchasing paint products from New Green.

You are to research and present your recommendations to PI as a Power Point (PPT) presentation or a video presentation (choose either the PPT or the video for your presentation). Scroll down for format requirements for the presentation.

The presentation should address the following:

A. Analyze and discuss the pros and cons – from a business perspective – of PI choosing Option 1 above and continuing to contract with Naturals.

B. Analyze and discuss all the specific potential legal risks and liabilities under negligence law associated with choosing Option 1 and continuing to contract with Naturals.

Be very specific and fully explain each legal risk and liability.

(1) Provide an example of each specific legal risk and liability associated with negligence and Option 1.

C. Analyze and discuss all the specific potential legal risks and liabilities under product liability law associated with Option 1 and continuing to contract with Naturals.

Be very specific and fully explain each legal risk and liability.

(1) Provide at least one example of a specific risk and liability associated with product liability and Option 1.

D. Analyze and discuss the pros and cons – from a business perspective – of PI choosing Option 2 above and contracting instead with New Green.

E. Analyze and discuss any potential risks and liabilities arising under contract law by choosing Option 2 and contracting with a company (New Green) in Mexico.

F. Assume PI chooses Option 1 and establishes a 3-year exclusive contract with Naturals to buy their paint and supplies. Assume further that PI was sued 1 year into this 3-year contract period under product liability law (for example, if a client sued because of some problem directly resulting from use of Naturals paint), what liabilities could PI face under contract law if PI chose to cancel its 3-year exclusive contract with Naturals prior to the end of the 3 years. NOTE: You are to address contract law risks and liabilities, not product liability law.

PRESENTATION FORMAT:

The 2 presentation formats are explained below. Choose 1 of the following formats for the presentation, either a PPT presentation or a video presentation.

PPT Format 1: Prepare a PPT with all necessary information on each slide. Place all notes, comments, and explanations to clarify and support your recommendations and conclusions for EACH slide directly on slides in the PPT presentation – not in a separate document. You will need more than one PPT slide for each point/idea/concept.

Everything you want to say/include in the presentation should be contained in the PPT slides. You may use bullets for the notes, comments, and explanations for each slide. However, the slides need to be comprehensive and complete, so they could “stand alone” without the additional explanation of the memorandum.

There is no set number of slides, but it must be comprehensive and detailed.

Include a title page, in-text citations, and a reference page on the slides.

VIDEO Format 2: Prepare a video presentation (i.e., using Office Mix, etc. – program of your choice). The video may be in the form of a power point slide show – or any video form you choose. Regardless of the form of the video, include all necessary information regarding concepts, ideas, etc.in the video. All notes, comments, and explanations to clarify and support your recommendations and conclusions must be included in the video.

Everything you want to say/include in the presentation should be contained in the video. You will not submit any additional written document – only the video.

You may use bullets in the video, as appropriate.

There is no set length for the video, but it must be comprehensive and detailed.

Include a title page, in-text citations, and a reference page on the video.

Resources for PPT presentation or video presentation:

You should use only assigned resources available in the classroom for the project.

However, if needed, please refer to the following links for tips on preparing a PPT presentation.

Creating a Power Point

http://www.readwritethink.org/files/resources/lesson_images/lesson1063/CreatingPowerPointSlide.pdf

Power Point for Beginners

http://www.readwritethink.org/files/resources/lesson_images/lesson1063/CreatingPowerPointSlide.pdf

BEFORE SUBMITTING THE PROJECT:

If you chose the PPT presentation format:

· Proofread for spelling and grammatical issues, and third person writing.

· Read the project aloud;

· Use the spell and grammar check in Word;

· Have someone who has excellent English skills proof the paper;

· Consider submitting the project to the Effective Writing Center (EWC). The EWC will provide 4-6 areas that may need improvement.

If you chose the video presentation format:

· Watch the video;

· Proofread video written sections for spelling and grammatical issues, and third person writing.

· Read the project aloud;

· Use the spell and grammar check in Word;

· Have someone who has excellent English skills proof the video;

· Consider submitting the project to the Effective Writing Center (EWC). The EWC will provide 4-6 areas that may need improvement.


 

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