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QUESTION

The Dilemmas Devon, a resident of Florida, had so many yards to cut each week that he decided running a yard service would be a great way to help pay...

The Dilemmas

Devon, a resident of Florida, had so many yards to cut each week that he decided running a yard service would be a great way to help pay for college. Devon decided on a sole proprietorship with the name of Yard Tech. Devon printed cards and flyers that listed the services, prices, testimonials and contact information. Services included year round yard cutting, mulching, planting, pruning and a variety of other landscaping services. 

Devon billed the customers on his yearly plan on a monthly basis. One of Devon's new customers, Don, sent him a check for $100, made payable to Yard Tech and signed by the customer. Devon took the cash and checks he collected for the week to the bank and found that Don stopped payment on the check. 

Devon purchased two new commercial grade string trimmers and one backpack blower online from Wise Sales for $840. Devon acknowledged the terms and conditions, provided his credit card information and selected UPS to deliver the goods. Devon did not purchase any additional insurance. UPS delivered one trimmer and one blower. The second trimmer was missing and the blower was damaged.   

Since Devon was a part time student, he did not have much capital and tried to save money where he could; therefore, he only used one bank account for his personal and business funds. Devon monitored his account once a week using the online portal furnished by his bank, SunTrust. On Friday night, Devon noticed that $252.33 had been withdrawn from his account on two separate occasions on Thursday. Devon knew that he had not spent that amount of money one time, much less two times in one day. He is afraid that someone fraudulently accessed his account. The following Monday was Labor Day and banks would be closed; however, one branch office was open for four hours on Saturday. On Saturday morning, Devon checked his account again and found that a check for $75 cleared the bank. Devon was able to view a copy of the check and noticed the check was written using another party's name and address using his routing and account number.

Assignent: for each dilemma consider the following:

  1. Is the sole proprietorship the best option for Devon's business? Select the type of business organization you believe is best for Devon and provide support for your choice.
  2. What are Devon's options related to the stop payment on the customer's check?
  3. What are Devon's options related to the undelivered and damaged goods? 
  4. What course of action would you advise Devon to take on Friday night and/or Saturday morning related to the missing funds? Will Devon be liable for the moneys withdrawn from his account? Explain why or why not. HINT: Outside sources will likely be necessary.
  5. According to your text, what laws govern business and consumer banking transactions? Provide a short summary of how the law(s) affect Devon
  6. Identify and explain any ethical concerns Devon may face related to the topics covered.
  7. Conclude your paper by providing suggestions for Devon to help prevent future occurrences of these types of legal and ethical problems.
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