Pizzeria Fantastic Case Summary

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A. SInce the company Pizzeria Fantastic CEO , Rusty Jefferson, was awarded a compensation package of 10,000 shares of common stock worth $50,000. That after two months of sitting immediately shot up to being worth $90,000. As the corporate counsel of Pizzeria Fantastic, I would advise Jefferson to sell about half of his shares. With the unexpected worth of the stock going up by $40,000 it will either go down or continue to grow depending on how the stock market is looking for the future. If everyone's stocks have been going down lately except for the Pizzeria stocks, then most stockholders are going to go towards our company to own a share so they could be able to re sell it. If Jefferson does decided to go through with the plan and sell half …show more content…
As the counsel of the Pizzeria Fantastic I would have to advise Jefferson to sells his stocks before they do crash down to being worth nothing. However, in order for it to not look as similar to the Martha Stewart case of being to sell all the stocks because of the company doing poorly and unfortunately having to go in bankruptcy. I would also advise Jefferson of keeping some of the stocks so that it does not look as if he was immediately trying to get rid of the stocks. If he is able to keep some of the stocks that would lower the suspension of anyone dealing with the company financially to wondering why Jefferson was so quick to sell the stocks in the first …show more content…
With the newly formed corporation the liability would have to rely on both the corporation and Perez. With them trusting Perez to set the motion of the company any mistakes or accidents would be in the responsibility of them because of the choice that they decided to make with hiring him. It would laible on Perez simply because he was the one who contacted the two men and made the contracts with him. If anything were to happen where the contracts are going to be at jeopardy then the first target would have to be Perez due to the amount of involvement that he incorporated into the company. However, if they wanted more people to blame in the corporation then they would be able to go after the partners who formed the

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