business entities, product liability, agency relationship, real property, manufactore, personal property, estate planning, transfer.

Case Study 1Fred is well known in his town for his homeopathic cough syrup. After years of encouragement, he has decided to take his miracle cough remedy to market as“Fred’s Miracle Cough Syrup.” While his cough syrup is homeopathic, one of the key ingredients causes a severe reaction when taken in conjunction with aspirin.Fred plans to make and bottle his cough syrup in an outbuilding on the family farm. His son, Sam, has been raving to the locals about his father’s cough syrup foryears, and the local drug store and grocer have contacted Fred to place orders as a result. Sam also intends to approach several national chains in an effort tosecure supply contracts for Fred’s cough syrup. Fred has asked Sam to assist him with deliveries, as Sam has a van. Fred would like Sam to be involved with thebusiness as an employee initially, with the option of making him a partial owner at a later time. Fred and his wife Sally have two children, Sam and Lilly. Both livein cabins on the family farm with their spouses and children. Fred and Sally engage you as their attorney to assist with the formation of the new business,including determining the appropriate business entity type, management issues, product liability issues, and estate planning for both the business and familyproperty. After your initial meeting, you identify and research the following issues