Jack and Jane have decided to launch a new bakery which they have named The Bake Shoppe. The Bake Shoppe will make and sell specialty cupcakes at the Shoppe and at selected retail locations. Jack and Jane form a Virginia limited liability company for the Bake Shoppe and are the only members of the LLC. The Operating Agreement for the LLC states that the LLC will be “member managed” and that Jack and Jane will share equally in the profits and losses of the LLC. Jack and Jane both signed the Operating Agreement.
Question: -What, if any, legal action can the Bake Shoppe take regarding the new law? Explain your answer.
An oven used in cooking cupcakes over heated and caused a portion of the Bake Shoppe to catch fire. The fire caused a chemical locker used to store cleaning chemicals to explode. The explosion injured several Bake Shoppe employees and also caused damage to an adjoining building owned by another company.
During the investigation, the Fire Marshall discovered that the chemical locker was not in compliance with applicable state and county requirements and that had it been in compliance, it likely would not have exploded.
-What legal claims, if any, can be brought against the Bake Shoppe by the injured employees and the owner of the adjoining build and what is the legal basis for the claims.
A friend of Jane is employed by another bakery shop. The friend signed an employment agreement which included a provision that she would not disclose any of her company’s confidential information to anyone else.
Jane has heard that the friend’s company is coming out with a new recipe for cupcakes and Jane would like to get information from the friend about the new recipe. The friend advises Jane that her employment agreement prohibits her from talking about the new recipe. Jane tells the friend that the Bake Shoppe is willing to hire her full time as a consultant and not to worry about the agreement.
-If the Bake Shoppe hires the friend and the friend discloses what she knows about the new cupcake recipe, what claims if any, can the friend’s company make against the Bake Shoppe. Explain the basis of your answer.
Over the course of the summer, the Bake Shoppe hired a number of high school students and some adults to serve as delivery drivers. To keep everything “legal”, the Bake Shoppe entered into employment agreements with everyone. The Agreement specified that each worker would be paid $15.00 an hour and that each worker would work 30 hours a week until the end of the summer. All of the workers signed the agreements.
After the first week of work, the adults began to complain that the pay was too low and threatened to quit if they did not get a raise. Some of the high school students also complained
-Can the Bake Shoppe enforce the employment agreement against the adults and against the high school students as written? Explain the basis of your answer.
Also at the end of the summer, Jane was approached by Linda, a former business partner, about Jane joining her in starting a new bakery using the same all natural ingredients and cooking process as used by the Bake Shoppe. The new company would not include Jack.
A few days later, Jane gave Linda a copy of the Operating Agreement for the Bake Shoppe and said to her that “Jack probably is not going to let me out of this.” Jane replied, “Don’t worry about it. If you join me, I will make it worth your while.”
-Jane and Linda come to you for advice on any claims that Jack might make against them if Jane accepts Linda’s offer. How would you advise each of them? Explain the basis of your advice.