1. Who owns the CadWatt Solar cell engineering? What rights. if any can SSC claim on it?

SSC owned the engineering. because the innovation related to the SSC’s concern and he had used some of SSC’s resources ( viz. . his SSC computing machine and SSC preparation Sessionss ) when developing it.

2. What can Pierre make to do his going from SSC amicable? Should he hold left earlier? What ongoing duties does he hold to SSC?

Pierre should see returning all the paperss and electronic devices in which he had at manus. Pierre has a non-disclosure proviso that prohibits Pierre from utilizing or unwraping any confidential information that he learned while working for SSC. To go forthing Oklahoman he should hold left before developing the company with Maya because he would hold non had to travel through these legal issues.

3. Can Pierre inquire several of his co-workers at SSC to fall in his new endeavor?

If people ask about his programs. he informed them that he was go forthing to get down a new concern and gave them a phone figure where they could make him.

4. Should Pierre and Maya hire an lawyer? How do they choose the right one?

Pierre and Maya should engage a lawyer. They should travel with a lawyer that is experienced in stand foring hi-tech startups.

5. Given their limited budget. can Pierre and Maya afford an lawyer? Can they afford non to acquire one?

Pierre and Maya can non afford to non engage a lawyer. Counsel will let them to turn around paperss every bit rapidly as them need them.

6. What would be an appropriate legal signifier for the concern from a liability and revenue enhancement standout?

Pierre should set up the company as either a LLC or a corporation. Which would stipulate the ownership involvements by stipulating how they would portion net incomes. losingss etc.

7. How should Pierre and Maya approach the issue of dividing the equity in the new venture between them?

Pierre and Maya concluded that Pierre should be given 50 % of the equity and Maya 35 % . The other 15 % would travel to SSC engineering.

8. How will they pull off their venture? What happens if one of the laminitiss foliages?

Pierre’s lawyer Sebastian proposed that the companies article of incorporation authorize 10 million of common stock and the 1million portions of common stock be issued at a monetary value of $ 0. 01 per portion. with 500. 000 to Pierre 350. 000 to Maya and a 150. 000 to SSC. He besides suggested the mandate of 1. 5 million portions of clean cheque preferred stack. based on his anticipation that the initial venture investors would seek 50-60 per centum of the equity.

9. What are the advantages and disadvantages of holding an active board of managers? Who should sit on the board. and what should the laminitiss expect the managers to make?

It is hard have all managers agree on a topic. Bing able to happen the right people for the right places can be hard. Directors must be provided with compensation. whether it’s intangible or touchable. The laminitiss should anticipate the managers to move in good religion and with trueness to the company. Capital of south dakota might besides desire to see the age. gender. and cultural background of each manager.

10. What are the founder’s options for financing the new venture?

Pierre and Maya could near Pierre’s anterior employer SSC and inquire for fiscal support. Second. the laminitiss could seek funding or corporate partnership with a company other than SSC. Third. they could happen an angel investor or a group of angel investors. Fourth. they could procure a bank loan or they might be able to self finance their company.

11. Question provided on page 9 of text edition.

Pierre worked with Anita to fix a standard at-will employment understanding which each of the workers signed. The understanding provided for a salary but no excess wage for overtime. The Americans with Disability Acts prohibits employers from oppugning appliers about their general medical status or any disablements. After an employer has described a occupations requirement the employer may inquire the applier if he or she will be able to execute the occupation with or without adjustments. If the applier discloses a disablement so the employer should inquire if there is any manner to suit the applicant’s restrictions. Sadiq’s hapless public presentation was good documented. Maya had given him seasonably and honest feedback based on nonsubjective and occupation related standards. Transcripts of all public presentation assessments was signed by Sadiq and kept in his personal file. With this at manus Sadiq has no grounds that in fact he has been discriminated against. Pierre should inform the employees that the company’s policy prohibits revenge against anyone who complains about any jobs or participates in any harassment probe. Pierre concluded by stating Stephanie that Bill will no longer study to her as she was being shifted to a different scheduling group.

12. How can Pierre and Maya guarantee that the company’s clients pay on clip and that providers ship goods in the measure and of the quality they need for the concern? What should they see before subscribing a standard signifier rental for office research lab or fabricating topographic point?

Pierre and Maya should set up a contract with every company dealing. Before subscribing a standard signifier rental one must see of the monetary value is low-cost and provides all the demands being looked for. Negociating reclamation options and besides doing certain there are no issues with a proviso forbiding an assignment of the rental or subleasing of the infinite.

13. What guarantees are implied when the company sells a merchandise? Can the company disclaim all guarantees and restrict its liability to replacing of the merchandise or refund of the purchase monetary value? Can the company imply in its advertisement that workss with big electricity demands can run entirely on solar power collected with CadWatt Solar Cells?

There are two guarantees that can be implied to a merchandise. Express and Implied guarantee. The marketer may disclaim any guarantees of quality if it follows specifically delineated regulations in the UCC designed to guarantee that the purchaser is cognizant of. and acquiescences to the disclaimers. There is a gross revenues understanding. which provides commissariats of limited liability. no other guarantees. restriction of liability. credence of these footings. In the instance of saying if it can run entirely of solar power collected with CadWatt Solar Cells it would merely work if the statement were true.

14. Does the company demand to be concerned that the belongings it is sing renting for fabrication is near a river?

Yes. there can be issues when it comes to deluging in the country where the edifice can be affected through H2O harm. They can besides be apt if an employee drowns in the river. Now if the company has insurance such as 3rd party liability the company could be covered.

15. How should the company decide a claim for assault. battery and false imprisonment originating out of an affray with one of the company’s employees and how can the company protect itself against such claims in the hereafter?

Under the philosophy of respondeat supervisor. an employee will non be apt because he would be working under the range of employment. Under the liability policy all amendss would be covered under this policy. Managing the state of affairs on of tribunal would be the best state of affairs in a instance that can be contained.

16. What happens if the company runs out of hard currency and can non pay its debts?

Chapter 11 permits a company to reorganise its concern by altering the debts must be paid. Recognition is accomplished through a program of reorganisation. which is proposed by a debitor company and considered by the bankruptcy tribunal harmonizing to specific substantial demands set Forth in the Bankruptcy Code.

17. If Pierre and Maya seek venture capital funding. how should they near the venture community? What concern and legal commissariats in the term sheet and other funding paperss should concern them? What is negotiable? Are any of these footings trade surfs?

They should reach a company that has involvement in alternate energy chances or merely interested in the company. They would be able to negociate commissariats that would include a board of managers. stock purchase. Any of the subjects can be a trade ledgeman if understanding is no meet.

18. How can the company protect its proprietary engineering? Does the company need to worry about go againsting other companies’ patents of right of first publications?

Cadsolar strengthened its right of first publication protection by registering a right of first publication enrollment for the CSC package and the certification shortly after publication. If other merchandises similar did exist they would hold to seek US patents every bit good as planetary. They can besides see seeking hallmark protection.

19. Should the company spread out beyond the United States? What are the advantages and disadvantages of traveling planetary?

Issues that might come up traveling into the planetary market enlargement can be legal. revenue enhancement and accounting ordinances. Issues with engaging aboard can besides show a job. Not to advert you have to understand planetary involvement tendencies such as support. advertisement. selling. pricing schemes and proficient support. The one obvious advantage would be increase in net incomes and planetary exposure for the company.

20. What hazards are involved in turning the concern by acquisition? Is it better to turn the concern internally? When should entrepreneurs see selling at that place concern to a larger rival?

The hazard one can meet by acquisition can get down merely with cost. I might be a company extended sum of financess to get maintain and construct on a company that might supply the false net incomes. Find out why they are giving up the company. When there is limited growing or a company has reached a tableland an enterpriser can see selling. 21. When is an initial public offering an appropriate issue scheme? What is involved in traveling public? What does in mean to be a public company?

The procedure of selling portions that was once in private held to new investors for the first clip. Otherwise known as an initial public offering ( IPO ) . Audited financials and a good direction squad. The creditability and experience of your direction squad is the most of import key in obtaining an investment banker and successfully finishing a public offering. You besides need a good exterior squad. These are your IPO advisers. comptrollers. lawyers. investment bankers and PR specializers.

Traveling public requires a Registration statement. which is a carefully crafted papers that is prepared by your lawyers and comptrollers. While non suited for all little concerns. the IPO can be a feasible issue scheme. Taking your company populace can be highly profitable. However. depending on how the IPO is structured. you may or may non be able to retreat any of your capital at the clip as new stockholders may desire to see all the money raised by the IPO be used to spread out the concern.