address legal issues in a business context from the point of view of a manager.

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General:
You are not a lawyer, and are not expected to have definitive answers to legal questions. You are supposed to be a manager with educated instincts about legal problems, including an understanding of broad legal doctrines, the ability to spot where legal issues will have an impact on a business arrangement and the individuals involved, and the ability to evaluate in a preliminary way how legal considerations shape risks and opportunities. You are asked below to address legal issues in a business context from the point of view of a manager. You should in your Response Memo show that you understand general legal principles and can apply them to specific facts.
Prompt:
You and Hingis Martina decide to leave EI to launch AWC immediately. Despite your efforts to convince the junior analyst and computer software engineer to join you and Martina, both decide to remain at EI, citing personal financial considerations as reasons for staying.
After discussing AWC’s needs in detail, you and Martina realize that (1) although the two of you have client-management expertise, you both alone do not have the technical expertise necessary to set up and operate AWC; (2) in order to convince potential clients to work with AWC – a company with no track record or name recognition, AWC will need to offer significant client discounts during its first six months of operations; (3) without outside investment, AWC’s operating capital ($40,000 in cash contributed by you; Martina contributed $10,000 worth of computer and multimedia equipment) will sustain the company for no more than six months.
Martina has also hinted that she may have to seek alternative employment if AWC does not prove profitable soon, because of the significant financial pressure resulting from the birth of a new child.

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