INTRO TO BUSINESS LAW

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A contract is a legally binding deal ' between two or more persons or institutions . The Contract Law governs all aspects of the contract . In case of contract violations , the contract can be enforced by the court through award of damages . Three things are necessary in to enter a contract . First , an offer to perform a certain service is introduced Second , that offer has to be accepted , and lastly , a transaction in form of a payment has to occur . The contract can be oral or

in writing . Oral contracts are usually made in cases where simple services are requested such as mowing the lawn or washing a car . When it comes to more complicated business matters such as website development or equipment lease or purchase , more detailed and written contracts are necessary The reason for detail is to ensure that all parties to the contract understand clearly what the costs and benefits associated with the contract are . All aspects of the requested service are defined along with the terms of payment . In addition to that , terms for damage reimbursement are set in case one or both parties breech the contract

In our example , Genes are Us ' has to deal with three different companies all of which are different in nature . This alone implies that three different contracts will be necessary . In the first case , with the website developer /hosting company , a very detailed contract will be necessary . As a representative of Genes are Us ' I would probably make sure that all required services are well defined and listed in the contract . Additionally , the contractor would have to offer a certain number of free revisions to my website . This is important in case inferior work is delivered . Remember , the test results will be available online and customer privacy can not be compromised through inferior web design . Furthermore , the cost of services and eventual scheduled increases of the same would have to be included in the contract . Terms of breech of agreement are necessary as well , in case the contractor is unable to complete work . This should cover any potential damage repayment very specifically

A Merchant Services agreement is a different matter . When dealing with a merchant services company you are essentially going to let somebody process your sales for you . My advice to Genes are Us ' would be to pay attention to two things . Primarily issue in this contract is privacy protection of customers . Since a third party will be processing a large amount of financial transactions , personal information such as checking account number , addresses , credit card numbers and so on will be available to that party . Part of the contract has to protect Genes are Us ' from potential privacy violations on the part of the Merchant Service . In addition to that , a clear definition of all services and a fee structure should be included in the contract

The third contract that Genes are Us ' has to consider revolves around purchase of genetic screening equipment . This is probably the most important contract that is to be signed . The reason is the fact that no matter how effective other contract are , if the equipment to process s is defective , no revenue will be created . Several things in this type contract are very serious and can lead to dangerous complications if not addressed . First , a comprehensive list of all purchased equipment should be included . Furthermore , all warranties associated with the equipment have to be mentioned . This is important in case of equipment malfunctions . Once these issues are clear , further services are negotiated with the provider . These services include regular equipment maintenance , software updates and other such things . When negotiated and included into the contract they can save a lot of money down the road All terms of payment for original services as well as for any additional services have to be clearly defined

One of the first decisions that have to be made is about the structure of the company . This decision usually has long-term implications and owners should consult professionals before they commit to any one type of a business structure . In case of Genes are Us , I would recommend a corporation as a business structure . Corporations are chartered by the state in which they are registered . A corporation is completely separate from the owners as it can be sued , taxed , and as it has the right to enter into contracts . The owners of the corporations are merely its shareholders who elect a board of directors to govern and direct the business . The advantages of a corporation over other business structures are many . Some of them include limited liability of the shareholders relative convenience to raise additional funds through sale of stock deductible benefit costs , and in certain cases tax credits . In my opinion , this form of business would be most beneficial to Genes are Us ' even though it creates more work and a higher initial cost

Protection of intellectual property should be taken very seriously with Genes are Us ' Valuable intellectual property generally does not suddenly or magically appear . The best business ideas are often the product of careful research and development . Artistic and literary creations frequently result from months and years of creative effort The adoption of a trademark may be preceded by expensive consumer surveys and a diligent search to identify previous uses of similar marks . To ensure that those who expend these efforts reap the benefits , the law recognizes four main types of intellectual property patents , copyrights , trademarks , and trade secrets . Intellectual property law also provides specific forms of protection for semiconductor layouts-designs , symbols indicating geographic origin industrial designs , and plant varieties (American Bar Association 2008 ) Generally , the law recognizes four types of intellectual property These include patents , copyrights , trademarks , and trade secrets

In case of Genes are Us ' there are various types of intellectual property that need to be protected . First is their service mark . The name Genes are Us ' is a source of service for a certain product and should be registered with the United States Patent and Trademark Office Since this is a new process of testing (mail-in samples , I would also register the process as a patent . The patents are good for twenty years This means that there would be no direct competition

Some ethical issues would arise out of this process . Genetically screening people without meeting them in person opens a lot of opportunity for deception and crimes . Two forms would have to be integrated into the system - age verification and identity verification For this purpose , a company such as VeriSign can be contracted According to Weiss (2002 ) Trust services vendor VeriSign Inc . today unveiled a new online identity-verification service that allows Web customers to positively establish their identities with online merchants ' This would help eliminate minors as well as persons who are misrepresenting themselves from the system

References

American Bar Association (2008 . The four main types of intellectual property . From The ABA section on intellectual property law . Retrieved on April 25th , 2008

Website : http /www .abanet .org /intelprop /4types .html

Weiss , Todd (2002 . VeriSign unveils new online identity-verification services . From the online magazine Computerworld . Retrieved on April 25th , 2008

Website http /www .computerworld .com /securitys /security /privacy /story /0 ,108 01 ,76558 ,00 .htmlIntroduction to Business Law PAGE 1 ...