(Solved)Q. Please go through the document and prepare a report.

Q. Please go through the document and prepare a report.



GeMot is an automotive company, which started its operations in 1989 in Germany. A merger of General Cars and Automobile Motors, GeMot has assembly plants in Germany, Italy, Spain, and Portugal, and most recently in India, with a workforce of over 45,000 employees, producing 1.7 million units (2016), with revenue of almost $30 billion.

Its specialty is “no-frills”, small, compact, fuel-efficient cars. The three founders are also co-directors, who head the company: designer and engineer Peter Hans, financial administrator Jean-Paul, and marketing manager Tom Norris, with neither holding titles such as “Chief” or “Director”, as they have a low-key management style.

GeMot recently expanded its operations into India, by building a car factory there where it has been quite successful, thanks to a group of students from ACCT, who assisted GeMot by researching India’s business environment and creating corporate programs specifically tailored for that country. India’s low labor costs and GeMot’s home country technology combined created strong competitive advantages to produce affordable cars that are distributed within India and to other Indo-Asia countries.

To keep prices low, GeMot sells its cars directly to consumers, instead of paying commission to independent car dealers, and its customers can also benefit from direct financing and low-cost maintenance. However, GeMot may license sales to dealerships, if that proves to be more economical. To its workforce, the company offers generous employee benefits, which include education reimbursement and profit sharing (through 401-K investment accounts). Their founders stated the company’s mission as “A company that fosters integrity with a team-oriented work-force to develop and distribute forward-thinking automobiles, which compliment common people’s lifestyle, while respecting the environment and positively contributing to the community.” GeMot believes it will be a good match with the culture in the United States.

GeMot prides itself in being a very “conscientious” business, going above and beyond a country’s legal requirements to protect society from both the impact of its manufacturing and cars’ emissions. GeMot has a robust, creative and expansive Corporate Social Responsibility and Ethical Business Compliance programs, which include guidelines from several government agencies and non-governmental organizations, both in Europe and India.

GeMot extends its home country standards to its foreign and supply chain operations and would like now to expand its business into the United States by partnering with two of the most ethical automotive companies: Ford Motor and Cummins, Inc. GeMot intends to establish a Corporation and obtain stockholders to invest in its operations.

GeMot’s directors hired your team to guide them in understanding the law aspects of business in the USA. They want you to prepare a report and presentation that will give them guidance and advice on:

a) contractual obligations; b) power of agencies over its business; c) advantages and disadvantages of licensing; d) intellectual property protection; e) product liability and warranty; f) employment laws; g) form of business organization rights; and h) obligations of executives and/or directors.


State of the automaker’s industry in the USA:

EPA, automotive industry:



Auto Alliance:

Ford’s challenge:



It’s very important to support your report with concepts & theories learned.


Describe what the report will be covering, drawing from the concepts and theories learned.

Describe the steps of the process, and how the team approached the project. (5 points)

2.Legal System in the United States. (5 points)

•Explain how is the US legal system, sources of law.

•Explain what Gemot should expect from attorneys.

•Explain the settlements available in the event of disputes.

3. Contracts and Agreements. (15 points)

•Explain why is important to have contracts.

•Explain how the common law and the UCC would apply to Gemot’s contracts.

•Explain the Statute of Frauds and how to avoid failure to comply.

•Explain the steps of creating contracts.

•Explain the potential issues with Performance of contracts.

•Explain what Excuses are available for non-performance of contracts.

•Explain the potential Discharges from contract obligations.

•Explain Remedies available when there is a breach of contract.

•Explains the Obligations of non-breaching party.

•Explain the rights and obligations of third parties in a contract.

•Explain “risk of loss” and how to avoid it.

4. Intellectual Property & Licensing. (10 points).

•Explain why and how Gemot must protect its Intellectual Property.

•Explain the advantages and disadvantages of Licensing Gemot’s products.

5. Warranty & Product Liability. (10 points).

•Explain what Warranties are, their Exclusions and Modifications and how to prevent issues.

•Explain what are the risks Gemot faces under Negligence and Strict Liability theories.

6. Agencies. (5 points)

•Explain the types of Agents Gemot may use for its start-up in the US. Also, see “Promoters”.

•What are the duties that Agents will owe Gemot?

•What are the duties that Gemot will owe its Agents?

7. Bankruptcy. (5 points)

•What are bankruptcy proceedings available to Gemot and what are the advantages of each?

•Explain the types of claims available to creditors.

8. Employment Laws. (10 points)

•Describe all the Employment Laws that Gemot will have to follow and why?

•Discuss a recommendation whether Gemot should establish “Employment At-Will” or not.

9. Antitrust & Consumer Protection Laws and Environmental Regulations. (10 points)

•Explain the obligations and risks Gemot has under the Sherman Act and the Clayton Act.

•How does the Robinson-Patman Act will impact Gemot’s business and how to avoid issues?

•Explain the Environmental agencies and the Acts (air, water, waste) that Gemot will have to follow.

10. Business Organization & Management of Corporate Business. (10 points)

•If Gemot decides to establish a corporation, recommend the type and explain why and the advantages and disadvantages.

•Recommend whether Gemot should Franchise dealerships and why.

•Explain the liabilities of a Corporation.

•Recommend where Gemot should incorporate and the steps that must take to incorporate.

•What are the rights and obligations of Directors in a Corporation?

•What are the rights and obligations of Officers in a Corporation?

•Explain what liabilities should Officers and Directors be aware of.

•Explain what Corporate Accounts could be liable for?

11. Conclusion: gather all the above information in two to three sentences to summarize your report. (5 points)

12. Attachments/Exhibits. (5 points)

•Charts or graphics (optional): as may be necessary to show theories, processes, etc.

•Bibliography (very important)

Revision: Spelling & grammar, logic & flow (read it out loud to yourself). (5 points)

Potential Total Points: 100

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