BUSINESS ORGANIZATIONS SPRING 1995 FINAL EXAM
1. complexity. IMPORTANT!
The exam consists of questions
In each of your answers,
which vary in
identify any statutes
and explain the effect of the statute upon your analysis of the question
Above all, answer the questions posed.
Time and words spent
questions not posed do not receive grading credit; to the contrary,
detract from your opportunity
your ability to answer the questions
that are posed.
Do not assume facts not specified in the question.
conclude that the question cannot be answered without however, knowing
note and explain that conclusion as part of your answer.
Since professors are only human (more or less), legible writing
and clear sentences will make your depth of knowledge
Todd Martinez and Linda Cerullo are graphic arts students in Long
BerJch, California in 1989.
fantasy scenes in the cafeteria one
day, they notice a cluster of children admiring their work, and explain that they are developing a game in which fantasy creatures do battle with each other.
children are fascinated.
instinct takes over:
Martinez and Cerullo copyright their
creatures and the game rules they concoct,
and begin marketing it under the name
"Creed of the Sorcerer," or "Creed," for short. to produce the game in quantity,
They find they need some money
and they persuade Martinez'
Rodriguez) and Cerullo's older sister (Agnes DiBlasi) each to invest $5,000, understanding on the
that all profits from the business will be shared equally among the
(At no point is any formal agreement among the participants
the game is a big hit in the Long Beach area, and Rodriguez
suggests that an effort be made to expand the business into new geographic areas. The other participants
concur, so Rodriguez gets in touch with two of his
friends (one in Anaheim and the other in San Diego) and persuades them to develop and market Creed in their home towns based on a $5,000 investment from each.
They, too, are quite successful,
and by June 1991,
Martinez and Cerullo are delighted that their one-sixth shares of profit (profit now being divided among all six participants)
to pay'for their entire tuition.
Rodriguez is delighted, too, and begins to take an even more active role in
, : I~ r ,
to be a problem.
and San Diego.
She is fined
if so, on what
the relationships and Cerullo
in order to continue
by Rodriguez upset with
Affairs school from
to all of their
and San Francisco business colleagues
they will be setting
and has no desire
in the San Francisco
What are her rights
to light --within
with the Phoenix
is over, and that
at this news,