Case Sim

In the case simulation scenarios, there are many legal factors and issues that are presented. Round One LLC is a company based in St. Louis formed by entrepreneur and CEO Michael that has been in existence for about two-years. Round One is seeking legal help on numerous issues regarding their organization and liability. The legal issues presented in the case simulations include mergers and acquisitions, piracy, copyrights, employee rights, as well as ethical problems.

The first particular scenario in the case simulation revolves around the aspiration that Round One wants to acquire a competitor to enhance the gaming experience offered by the company and to add about $200 million in equity. Round one is a LLC, which allows for an unlimited number of members and are treated as nontaxable entities for federal income purposes. The members of an LLC are only liable for investment and share equal management unless a manager is designated. (Reed, 429) Round One also has a board of directors in place to carry out the essential functions of the organization. The board of directors legally run the business and are more liable for the organization’s debts and mishaps than shareholders or non-managerial employees. Round One’s annual revenue is about $2.9 billion with net revenue at $375 million, even though the company is carrying about $70 million in long and short term debt according to the balance sheets. The rival competitor’s name is not mentioned, nor is the type of organization listed. However, if a company has the potential to add $200 million in equity if acquired, it can be inferred that the organization is for the most part well off and holds a profitable amount of market share. If this is the case, Round One may not be able to acquire the rival competitor for financial gain. Since the rival competitor is a separate entity that is financially stable, a merger will have to be agreed upon in order for Round One to acquire it. A merger is the extinguishment of a...