It is part and parcel of the U.S commercial life that most of American private companies, often started by friends and families, are of the ‘quasi-partnership’ type. “This type of business generally consists of few participants or partners, with distinction between control and ownership of the business” (Unsworth 1999). Therefore, a quasi-partnership is a type of business that joins two or more partners or individuals. In our case, Jose and Lou want to open a restaurant and a sport bar but they don’t have enough capital to do so. Jose and Lou can make Miriam be a quasi-partner in the business, “since Miriam is willing to give capital to start the business in return to be made a shareholder” (Unsworth 1999).
Whether it is a small or large business, all new businesses are subjected to the same rules and regulations. The laws and regulations the restaurant must adhere to include: advertising law, employment and labour law, financial law, privacy law, and workplace safety and health law. Additionally, the restaurant needs to obtain a liquor license and food license that will permit both alcohol and food to be sold in the restaurant. The restaurant needs to adhere to all the requirements that have been set by the local Health Department. “These licenses should then be displayed in a clear view for all customers to see” (Pegrum 2003).
In America, issues that touch on shareholders are entrenched in the corporate laws. But corporate law may not provide enough protection for a quasi partner (minority shareholder), who may wish to protect his/her position in the business. Therefore, a shareholders’ agreement can be used to protect Miriam who is prepared to provide start-up capital to fund the restaurant business.
The risk that is associated with a shareholders’ agreement in the U.S. is that it can constitute a partnership, and this can result in liability to partners in situations of a bankruptcy or tax consequences.
Extermination Business
Frank can open his chain of business or enterprises under a sole proprietorship. A sole proprietorship is a type of business or venture that is owned and run by one person or individual and in which there is no legal distinction between the business and the owner. Frank will be running his business as a sole proprietor; he will have control over the entire business, then Frank can decide to file his company’s taxes by himself or employ an accountant to do accounting work for him.
The risk that Frank will incur during opening up of his chains of business will be getting start-up capital from his own personal means or account. But before Frank is allowed to open up the chains of extermination business, he will have to obtain a Commercial Pesticide Applicator License (CPAL). “To be given this license, Frank is required to pass all the extermination tests and examinations” (Pegrum 2003).
Additionally, Frank needs to submit supporting business documents and information, and the required fee. Before a license is issued, Frank must meet the following criteria: financial responsibility requirement (such as certificate of insurance requirement), and have a qualified personnel. “Extermination business must have at least one employee in a supervisory role and he/she should be qualified to handle chemical used in the extermination business” (Pegrum 2003).
Annually, Frank must recertified his license to stay current, if Frank decides to employ other workers, he will be required to hire only workers who have taken and passed the extermination tests and examinations. Under the U.S. extermination laws, no employee is allowed to work without having the necessary extermination licenses.
Frank extermination business will have many risks, these risks include polluting the environment with chemicals, using pesticides around pets and children, health hazards on employees applying the extermination chemicals. Therefore, Frank needs to be careful when using extermination chemicals, and all the necessary precautions should be put in place when applying chemicals.
Construction Scenario
Mei-Lin, a hiring manager for Surebuild, Inc., has put an advert for a position in the construction firm for a jackhammer operator. Mei-Lin has a difficult time to determine which applicant will fit comfortably the new position at the firm. Additionally, Mei-Lin is required by the Labour Laws (U.S. Equal Employment Opportunity Act) to treat all applicants fairly and also find a suitable applicant (Jasper 2000). “All labor laws and regulations protects an applicant against any form of discrimination” (Pegrum 2003).
There were four applicants who responded to the jackhammer operator advert, and Mei-Lin is required to hire only one applicant. Mei-Lin has decided not to hire Eric (aged 55 years, who is experienced with a jackhammer, but has no high school diploma) because the advert required the applicant to have a high school diploma. Felipe (aged 38 years, does not speak English and does not have a high school diploma, but knows how to work with a jackhammer) will not be hired for the position because he does not have a high school diploma. Although Michelle is pregnant, she is a high school graduate and has worked as a jackhammer operator before, she will be considered for the position together with Nick who is a college graduate but has no working experience with a jackhammer. Nick is suffering from epilepsy but Equal Employment Opportunity Act requires Mei-Lin not to discriminate against an individual because of a disability. Therefore, Mei-Lin has no choice of hiring Nick or Michelle because they have necessary qualifications.
Conclusion
There are many rules and regulations businesses must follow. For a person intending to open up a business, it will take them great amount of hard work and dedications, but the most important thing is for the owner of the business to understand and learn the rules and regulations that are required in open up a business, from taxation, liability to hiring of staff. It is important for a business owner to protect his/her investment and to ensure that the firm or business grows, and adheres to Federal or State laws. Therefore, business owners need to fully understand the rules and regulations of the business.
References
Jasper, M. (2000). Employment discrimination law under. New York: Oceana Publications.
Pegrum, F. (2003). Public regulation of business. New York: R. D. Irwin Publisher.
Unsworth, B. (1999). The partnership. London: Oxford Publisher.