Chapter 16 – Sole Proprietorships, Franchises, and Partnerships

1. Compare and contrast the different forms of business entities: sole proprietorship, partnership, limited partnership, limited liability company, and corporation, following my Web handout, business enterprise chart 

(We will cover the basics of limited partnerships and limited liability companies in class, skipping Chapter 17; corporations will be covered in Chapter 18)

Section 1

2. Identify the advantages and disadvantages of the sole proprietorship

Section 2

3. Identify and describe the types of franchises

4. Explain federal and state laws regarding franchises, including Arkansas law regarding franchise termination

5. Analyze the franchise contract

    a. Describe contractual issues of payment, quality control, and franchise termination, including the issues in Kerl v. Rasmussen, Inc.

Section 3

6. Regarding partnership law:

    a. Explain the role of the Uniform Partnership Act

    b. Apply the definition of a partnership, including the essential elements of partnership status

    c. Explain partnership formation, partnership management and control, partner joint and several liability, Moren v. Jax Restaurant,  fiduciary duties, partnership taxation, and compensation of partners

    d. Apply the rules of partnership dissociation, dissolution, winding up and termination, including partner liability to third parties, and distribution of partnership assets