| Course | BUS 307 Business Law II |
|---|---|
| Module | Module 4 |
| Paper type | undergraduate project memo on business organization, authority and employment risks |
| Length | About 860 words, 5 pages |
| Format | APA 7 student paper |
| School | Southern New Hampshire University |
| Program | BS Business Administration |
| Updated | October 2026 |
Free sample paper for BUS 307 Module 4
Memorandum
To: The Owners
From: Business Manager
Date: November 3, 2025
Re: Fixing our structure, signing authority and crew status before spring
Summary
This year exposed three gaps in how we are organized. I recommend that we convert our partnership to a limited liability company before the spring hive move, adopt a written signing authority policy and tell our vendors about it, and reclassify our seasonal crew as employees. Together these steps cost about $9,500 to set up and about $14,000 a year in added payroll costs, and they protect our homes, our cash and our crew.
Our Business Form
As general partners, each of us is personally liable for all the business's debts. The Nebraska accident showed what that could mean; if the claim had exceeded our insurance, any of our homes could have been at risk. An LLC would limit our personal liability to what we have invested, while keeping the same tax treatment we have now. Bainbridge (2015) describes the LLC as combining the liability protection of a corporation with the flexibility of a partnership, which fits a family business like ours.
The operating agreement matters as much as the conversion. It should say that if one of us divorces, the company buys any interest a former spouse receives at a set value, so no spouse becomes an owner. It should set buyout terms if one of us dies, becomes disabled or wants to leave, with payments spread over five years. Our lawyer estimates $3,500 for the conversion and agreement.
Signing Authority
The foreman's truck purchase showed that we can be bound by someone we never authorized. Because we paid for the trailer he bought from the same dealer in 2023 without telling the dealer of any limit, the dealer could reasonably believe he could buy equipment for us. A business is bound when its own conduct creates that appearance (Mallor et al., 2022). We have also been using the truck, which likely confirms the contract. I recommend we accept the truck, which we needed anyway, and then fix the gap.
The operating agreement should set signing limits: the foreman and crew leads up to $5,000, any one of us up to $10,000 and two of us for anything larger, along with all borrowing. We should write to every vendor and dealer we use stating those limits, which removes the basis for any future claim that someone appeared to have authority. The foreman should receive the limits in writing and sign that he understands them.
Our Seasonal Crew
We pay our eleven seasonal workers by the hive and call them contractors, but we set their hours, provide the trucks and equipment, train them and direct the work, and they return every season. Under the tests courts and the Labor Department use, they are employees. The good news is that federal wage law treats beekeeping as agriculture, so they are generally exempt from overtime, and their pay already exceeds the minimum wage (U.S. Department of Labor, Wage and Hour Division, 2008). We will need to run payroll, withhold taxes and arrange workers' compensation coverage, which our accountant estimates will add about $14,000 a year. We should also ask her whether to correct prior seasons' payroll taxes voluntarily, which usually costs less than waiting for an audit.
Plan
Action plan
| Step | Owner | By | Cost |
|---|---|---|---|
| Draft operating agreement and file conversion | Eldest sibling with lawyer | January 31 | $3,500 |
| Retitle trucks, update insurance, bank accounts, contracts | Business manager | February 15 | $1,500 |
| Send signing authority letters to vendors | Business manager | February 15 | Minimal |
| Written authority limits for foreman and crew leads | Youngest sibling | February 1 | None |
| Payroll setup and workers' compensation for crew | Business manager with accountant | March 15 | $4,500 setup; $14,000 a year |
Conclusion
I ask that we approve these three steps at our December meeting so the lawyer and accountant can begin in January. Each fixes a gap that cost us little this year only because we were lucky.
What These Steps Do Not Fix
These steps reduce our risk but do not remove it. An LLC will not protect any of us from claims based on our own conduct, such as an accident while one of us is driving a truck, so our liability insurance remains essential, and I recommend asking our broker whether a $2 million umbrella policy makes sense given the Nebraska claim. The signing policy will not stop someone from exceeding their authority; it only makes it harder for a vendor to claim they did not know, so we should also review monthly statements for unexpected purchases. And reclassifying the crew does not settle what we may owe for past seasons; that depends on our accountant's review. I have kept these limits in view so that we do not treat the new structure as a cure for everything.
Questions You May Have
Will the conversion change how we split profits? No; the operating agreement will keep equal shares unless we decide otherwise. Will our customers notice? Only in that invoices and contracts will carry the new name; our almond growers and honey packers will receive a short letter. Will the crew lose anything by becoming employees? No; they will gain workers' compensation coverage and the business will handle their tax withholding, which several have said they would prefer.
References
Bainbridge, S. M. (2015). Corporate law (3rd ed.). Foundation Press.
Mallor, J. P., Barnes, A. J., Bowers, L. T., & Langvardt, A. W. (2022). Business law: The ethical, global, and e-commerce environment (18th ed.). McGraw-Hill Education.
U.S. Department of Labor, Wage and Hour Division. (2008). Fact sheet #12: Agricultural employers under the Fair Labor Standards Act (FLSA). Author.
What the BUS 307 Module 4 instructions ask for
Project One in BUS 307 usually asks you to advise a business on legal issues arising from its organization and relationships, often in memo form. You typically identify issues such as the choice of entity, the authority of agents and the status of workers, analyze them using the relevant rules and recommend actions. The best memos speak to the named reader, open with the recommendations, explain the law only as much as the reader needs and give a practical plan with timing and responsibility. They connect the issues where they overlap, such as how a new entity's operating agreement can also settle signing authority. A table of steps with owners, dates and costs is usually the clearest way to close.
How this BUS 307 Module 4 project one example is built
The memo opens with a short summary of three fixes. It recommends converting the partnership to an LLC before the spring move, with an operating agreement that sets buyout terms for divorce, death and withdrawal. It recommends an authority policy, written into the operating agreement and sent to every vendor, limiting the foreman to $5,000 and requiring two owners' signatures above $10,000, after explaining how the truck purchase bound the business. It recommends reclassifying the seasonal crew as employees, noting the overtime exemption federal law gives agricultural workers including beekeepers, and arranging workers' compensation. A table gives each step's owner, date and cost. A short section on what the steps do not fix keeps the owners from expecting too much.
Where the BUS 307 Module 4 rubric puts the points
The Project One rubric typically rewards clear identification of issues, accurate application of entity, agency and employment rules, practical and specific recommendations, attention to audience, organization and professional writing. The best memos give the bottom line first, explain each issue briefly in plain language, connect recommendations to the analysis and provide a realistic plan. They acknowledge costs and uncertainty. Memos lose credit for legal analysis without recommendations, for recommendations without owners or dates, for technical language the owners would not understand and for treating issues in isolation when one fix can address several. Memos that acknowledge what the recommendations will not solve are usually read as more trustworthy.
BUS 307 Module 4 help: the mistakes that cost points
Advice memos often explain the law at length and recommend briefly. Reverse the balance: tell the owners what to do, then give just enough explanation that they understand why. Look for ways one action solves more than one problem, such as using the operating agreement to set signing authority. Give each step a person, a date and a rough cost. Use plain words for legal terms, or explain them in a phrase the first time. Close with what the owners need to decide. Anticipate two or three questions the owners will ask and answer them briefly at the end.
Get BUS 307 Module 4 written to your instructions
Send the BUS 307 Project One guidelines and your case. The memo will explain each legal risk in plain terms, recommend specific fixes and give owners, dates and rough costs. About two days; your first project is free. The paper above is an original model document written by our desk, not a submitted student paper and not an official Southern New Hampshire University document.
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BUS 307 Module 4 questions, answered
Where can I find a free BUS 307 Module 4 Project One sample?
This page includes the complete BUS 307 Project One memo on entity, authority and employment fixes for a beekeeping business.
What should an operating agreement cover for a family LLC?
Ownership shares, management and voting, signing authority, transfer restrictions, buyouts on death, divorce or withdrawal, distributions and dispute resolution.
How can a business limit an employee's authority to sign contracts?
By setting written limits, telling vendors who may sign for what, requiring multiple signatures above set amounts and reviewing any past conduct that created a contrary impression.
What happens if workers are misclassified as contractors?
The business may owe back payroll taxes, penalties and wage obligations, and workers may lack workers' compensation coverage if injured.
Why put recommendations first in a legal memo for owners?
Because owners need to know what to do and decide; the explanation supports the recommendations rather than leading up to them.