Question

Fact Pattern

You decide to start making tee shirts in your garage with two ELAC classmates, Moe and Curly. Your tee shirts are selling fast all over Los Angeles. Your tee shirts are unique because they feature animals in a cartoonish manner with cool hats walking down the Venice Beach boardwalk. Your tee shirts sell for $20 a piece. It costs you $5 to make each tee shirt. You, Moe, and Curly are selling shirts as a hobby and had no idea that this would become so popular. You, Moe, and Curly operate under no formal business entity. You handle the paperwork, Moe handles the money, and Curly is the creative designer.   

You, Moe, and Curly attend the USC vs. UCLA football game and wear some of your shirts. Many people notice your shirts and like them. Fans ask do you have them with USC or UCLA colors and mascots on them. You, Moe, and Curly decide to try to figure out how to make this happen. Since you are an expert in business law, they agree that you can handle this project.

You reach out to both USC and UCLA and speak with their Athletic Departments. Both USC and UCLA like your idea.  

4. ) Do you think that you should have a business agreement between you, Moe, and Curly governing how Husky Shirts will operate?
   1. Based on what you have learned in this course, what types of terms would you insert in that agreement?

Answer 1