Question

Over The Course Of The Year Following Dan Price’s April 2015 Announcement, He Was Embroiled ... Question: Over the course of the year following Dan Price’s April 2015 announcement, he was embroiled in a ... Over the course of the year following Dan Price’s April 2015 announcement, he was embroiled in a legal battle with his brother Lucas, co-owner of Gravity Payments. Lucas Price sued Dan, claiming that his brother had violated the 2008 agreement governing the ownership and management of the company. Under the terms of that agreement, Dan owned 67.5 percent of the company, and Lucas stepped away from what had previously been his day-to-day involvement in the company. Lucas sued in part, because he says his brother had failed to involve him even in very major decisions-including the decision to change how much Gravity workers were paid. The lawsuit also claimed that Dan was paying himself too much. Court documents showed that Dan had tried to get his own total compensation raised to $5.5 million, which amounted to more than half of the company’s total revenue. At the time of writing, the judge in the case had agreed to the two brother’s request to be allowed to attempt to resolve their problems out-of-court, through mediation.

Answer the following Questions:

What consequences, good and bad, short- and long-term, can you reasonably foresee from this appointment?

What principles might be cited to defend this position? What principles might it violate?

What would be the virtues necessary for someone to be a good compensation czar? What vices would make such a person bad in this position?

Should government set a "maximum wage" limit in the way that it sets a minimum wage?

Answer 1

Answer 1:

After going through the given scienerio, the consequences that I can foresee from the appointment with the mediator in order to attempt to resolve their problems out-of-court are as follows:

• Both the brothers can resolve their differences,
• Dan will start involving Lucas in decisions related to Gravity Payments.
• Lucas will be allowed to start functioning and participating as per the terms and conditions of agreement.
• Dan’s compensation will have to be agreed by both the owners.

Answer 2:

The principles that might be cited to defend this position are as follows:

• As per the Uniform Partnership Act ("UPA"), each of the co-owner has full ownership of his part.
• As per RUPA (Revised Uniform Partnership Act) section that covers Relations of Partners to Each Other and to Partnership, gives a clear picture of that duties must be done with loyalty.
• Co-owners have the right to enjoy profits according to their share in business.
• The co-owner of business have the advantage of joint consultations and joint decisions

The principle it might violate include:

• Decisions taken without co-owners concern,
• Decision to sell the business without informing co-owner.

Answer 3:

Virtues are those traits that constitute a good and meaningful human life. The virtues necessary for someone to be a good compensation czar might include earning enough to live a lavish life. As compensation is considered ones sense of self.

And such a person will be made bad in his position if is not earning sufficient enough to satiate his luxury needs.

Answer 4:

In my opinion government should not set a "maximum wage" limit in the way that it sets a minimum wage. Because, the person owning a profitable business will be bounded under this maximum wage boundaries. Once, the person pays sufficient taxes that he is eligible and bounded to pay, he should be set free to enjoy the profits he is making through ethical and lawful earnings.