Business Factset

Welcome. This is the second written assignment in BL 240. Before you begin the assignment, re-read that portion of the course syllabus (see Modules>Getting Started>Syllabus) dealing with “Written Assignments” to ensure that you understand the format (cover page plus no more than two type-written double spaced pages, content of the cover page, Code of Honor statement, etc.). You will be graded both on your response to the assignment and on having followed the directions (format). Note: The legal issues in WA2 may cover any of the material in Unit 2 plus may include secondary (minor) issues from Unit 1. Remember that verbiage will not be rewarded. Listing the issues and the controlling law for each issue is all that is necessary. The object is for you to show me that you understand the material in Unit 2 and can apply it to a specific fact set.

Written Assignment #2: Kyle is looking to move Alabama Sunshine to a higher level. His canned and dried produce lines are growing but he wants to push his new hot sauce, salsa, and condiment lines. He sees the organically grown produce operation as gaining a solid, well-rooted consumer base; however, Kyle wants to expand beyond seasonal produce. He needs a way to communicate an identity for his new products and, after considerable thought, settles on the name Kyle’s Flavorful Condiments, a name that Kyle believes will stick to the plates and palates of his patrons. Kyle has successfully gotten the hot sauce, salsa, and condiment lines into the United Nutrition Associates (UNA) grocery stores in Florence, Madison, and Huntsville, AL, and has placed red and white billboards along I-20 in Tennessee, Mississippi, and Alabama advertising his new products; his new market in Jasper, AL; and his new company website (KFC.com). The slogan of his new venture, which he uses in radio and TV ads, is “KFC, your assurance of flavorful farm fresh, family-focused, affordable food.” Shortly thereafter, Kyle received a certified letter from a well-know, nation-wide chain restaurant, Kentucky Fried Chicken (KFC), alleging harm to its business interests, including infringement of and dilution of its trademark and trade name.

Undeterred and determined to put some spice into his profit margin and give customers a new taste, Kyle decided to kick off the football game season by introducing a special offer pack of his hot sauce, salsa, and condiments especially designed for tailgating, calling it the KFC Variety Pack. The variety packs are now stocked in all of UNA’s grocery stores and have proven to be so successful that the stores quickly sold out. Now UNA wants more of Kyle’s product. UNA’s chief financial officer (CFO), Candace B. Ritenoff, calls Kyle promising to buy all of the KFC Variety Packs that Alabama Sunshine can produce within the next 45 days and promises to mail a deposit of $12,000 immediately to seal the deal. Unfortunately, Kyle was out-of-town, having decided to celebrate the forthcoming holiday season early by touring the Gulf Shores area to relax and look for new business opportunities. The CFO left the offer on Kyle’s office phone voice mail and Kyle did not get the message until a week later when he returned to Jasper. He immediately called Scooter, his production manager, telling him to crank up production of the variety packs by running the plant 24 hours a day, seven days a week, and promising Scooter a hefty bonus “if UNA’s needs are met”. The sudden activity, promise of the bonus, and associated pressures caused Scooter to relapse back to his old substance abuse habit, requiring that he be admitted to a residential detox facility in Savannah, TN, but not before he had gotten the revised production schedule operational at the plant.

Kyle is concerned about the letter from the national restaurant company, doesn’t want to get in a protracted and costly legal battle, and comes to you, his faithful college friend, for counsel. Kyle mentions that, after telling his farm field production workers about restaurant company’s cease and desist letter, some of them became angry, fearing for their jobs, and threw overripe tomatoes and chili peppers at passing Kentucky Fried Chicken trucks, causing one of the drivers to run off the highway, striking several utility poles. Kyle is also concerned that, since he has contracts with Slogan-Alert Advertising for the billboards and WLEO radio station for “on-air” commercials, he could wind up losing a lot of money. As a passing comment, Kyle mentions that he also has a contract with Intensified Tide Computer Services (ITCS) for the maintenance of the Alabama Sunshine/Kyle’s Flavorful Condiments website and asks your counsel about the offer from UNA’s CFO and whether he may have to pay Scooter the bonus as promised.

Note: As with all Written Assignments, WA2 has a point value of 25 points. This is to be your own work with no help offered, given, or accepted as per our Class Code of Honor.

To help you organize your thoughts, I suggest that you read the fact set; decide which facts are relevant and which are merely verbiage; based on the information in Unit 2 (note that WA2 may also include information found in Unit 1), decide which legal information is relevant to the issues; then state the relevant legal issues and state clearly the relevant law.