Miranda Godfrey Ryan Grelecki BUSA 2106 April 24, 2014 Build-a-Business Final Paper: Atlanta Gymnastics Company

I will be starting a company called Atlanta Gymnastics Company (AGC) that trains competitive gymnasts and includes on-site physical therapy. This company will be in the sports industry. The gymnastics company will offer only services. The services that will be offered are the training itself and physical therapy. The target market for this business will be the parents of children and teens between the ages of three and eighteen. The business will be set up in Atlanta, Georgia simply because I have experience with the sports industry in Georgia and will better know how to run this type of business within the state. Also, Atlanta being a central location to all of metro Atlanta, more gymnasts and talent can be pulled in to the company from all over North Georgia, making the business more successful overall. Many different risks are associated with this type of company, including faulty or unsafe training, possible accusations of sexual harassment (anytime adults are working with many children), and negligence. Also, with the physical therapy aspect of the company there is always the risk of malpractice. When it comes to ethics, there are endless things for AGC to consider. We must make sure we are treating each of the gymnasts fairly, not favor any one person over the other. Excessive pressure and stress should never be put on the athlete. The coaches should

always train to the best of their ability, never being cynical toward the athletes or letting their individual performance affect the quality of the coaches training. The gymnastics company will take the form of a limited liability company. The reason I chose this business form is because my business will get the advantages of being taxed like a partnership, but obtaining the limited liability of a corporation. With a company in the sports industry, I feel as if limited liability is something that is very important to have. In the case of a law suit due to someone getting injured, the owners of a company should not have to accept personal liability. Also, being taxed like a partnership will be beneficial to the company. One of the disadvantages, however, is that anything donated to AGC by one of the members cannot be claimed solely by that member; all members get responsibility for the action. This could discourage members from contributing a lot to the company. I do believe that is a minor disadvantage, however. Being a business that is focused on developing and enhancing athletic performance in gymnasts, property will be needed to facilitate said practices. So, the first contract that will be necessary for starting the business will be one with a seller, regarding the purchase of property. After the property is obtained, many contracts will be needed to run a business on this property. Receiving power, water, internet and phone services, and garbage removal will all require contracts with each company that provides each service. Also, property insurance and a lease will come with necessary contracts as well. Next, a contract will need to be created between the partners of the business, stating which responsibilities each member will take and other specifics in regards to each partners time with AGC. A contract could also be produced for each new employee as well, including coaches and physical trainers, as a guide to the partners expectations.

There are thousands of intentional torts that could be claimed in a company that teaches gymnastics, especially considering the physical therapy aspect of the business. To name a few examples, intentional infliction of emotional distress could be claimed if a coach was to pressure an athlete to win a competition by threats or some other violent conduct. A clients right of privacy could be violated if a physical therapist was to reveal their personal information or details of their rehabilitation process. Also, revealing of a persons private information held in files by the gymnastics club could violate this right as well. Fraudulent misrepresentation could be claimed of the club as it advertises, trying to make a good reputation for the company. Assault and battery could also be a possible claim in the event that an athlete felt threatened by a coach or was injured intentionally during practice. Sexual harassment is also a concern in an athletic environment as well. The standard of care that must be exercised by AGC is very extensive. First of all, the companys partners require a duty of care to one another, in doing what is best for the business overall. This same duty of care is also applied to the clients and athletes, to keep them uninjured and satisfied to the best of the companys ability. Because customers will be invited onto the property, the partners must go to great lengths to ensure that the athletes will remain as safe as possible by inspecting the premises daily. This, in turn, will also be what is best for the company in the long run. The duty of loyalty is owed by the companys partners as well. Each partner must genuinely work for the benefit of the gymnastics club and remain loyal to the company, despite outside influences that may persuade them otherwise. The first scenario that comes to mind concerning negligence is faulty equipment. For instance, if it is someones responsibility to routinely check up on the safety of equipment, and that person fails to do so, it could bring up trouble. If a gymnast is practicing on the bars and the

equipment somehow breaks, causing the gymnast to fall and injure their self, a claim of negligence is sure to be an issue. Another incident that could take place is a lazy physical therapist not taking good care of a childs injury. Giving that child the wrong care or lack of care for their injury could lead to the child being further harmed. If the physical therapists practice was faulty, a negligence claim can be made. Along with these examples, many other cases of negligence could be named as well. AGC will not offer any express warranties or be subject to any implied warranties because the company will only sell services. The business will be selling instruction on the sport of gymnastics; therefore, the quality of the product depends on how the consumer takes advantage of it. Also, the company will avoid any claims of quality to avoid warranties of any kind, simply because the quality of given services can be interpreted differently by many people. For instance, if a parent did not agree with a coaching style used at the club, they may claim the service is not of good quality. The same rule applies for product liability. In the case that someone were injured due to services received, that person could not claim product liability. That case would fall under negligence, as discussed above. For this reason, I do not believe the company should be subject to any warranty or product liability. When it comes to agency relationships, any employee at AGC will act on its behalf. There are many risks associated with this type of relationship. Most mistakes that are committed by the employee will reflect the entire business. If the employee commits any torts within the scope of their duties, the entire company could be held responsible for his actions. These torts could include assault, battery, fraudulent activity, intentional infliction of emotional distress, and even unintentional negligence. Because of the agency relationship between the employer and employee, the employer could be held liable for these actions.

Just like any business, AGC is subject to employment discrimination charges. Cases of race, national origin, and religion discrimination should not typically occur, unless blatantly intentional by whomever is hiring. However, gender, age, and disability accusations are very possible to arise. The company could be accused of gender discrimination if AGC hires too many male coaches, for instance. Discrimination charges about age are possible if the company does not to hire someone who is relatively young or old. Also, disability discrimination is likely to arise in the event that someone who is not physically capable of coaching or has a disability that makes them incapable of completing the tasks they would be assigned upon being hired. In the event of a discrimination charge involving gender, age, or disability where AGC was not guilty, they could prove that the victim did not have the requirements for the job, or that someone who was more qualified was hired instead. Intellectual property will not commonly be an issue in a gymnastics training center, or in the physical therapy aspect of the company. However, there are a few instances that might make this aspect of law relevant. The most obvious instant would be obtaining a trademark for the companys name and logo. If AGC became increasingly popular, a trademark may be a reasonable protection to acquire so that other companies cannot use the same name or appearance. Intellectual property could also be claimed in the form of a patented invention. For example, the company as a whole could invent a piece of training equipment that significantly improves a gymnasts performance on, say, the beam. To protect this invention, the company would work to obtain a patent, so that other companies could not produce and sell the same product. Training centers around the nation would then have to buy the product from the company and it would raise profits to benefit the gym.

Atlanta Gymnastics Company Code of Ethics

Our Mission To provide the instruction and care required for each athlete to reach their upmost potential. In our best attempt to fulfill our mission statement, Atlanta Gymnastics Company will take the following ethical measures: AGCs Code of Ethics 1. Care for the physical, mental, and emotional state of the athlete above all things. At Atlanta Gymnastics Company, the condition of each athlete will always be more important than success. To ensure that each athlete is healthy, we promise to: Hire only highly-experienced coaches Require each coach complete an extensive training course immediately after hiring Ensure that each piece of equipment is functional Be wary of faulty instruction that could lead to injury Provide on-site rehabilitation in the event of an injury Never push an athlete to perform a skill they are not comfortable with Make the training gym a safe environment 2. Provide insightful instruction that goes beyond expectation. We strive to provide instruction that is personally beneficial to each athlete. To do this, we pledge to: Provide coaching that takes each athletes personal goals into consideration

 Conduct weekly coach meetings to brainstorm more effective training methods Provide additional classes to enhance specific aspects of each athletes performance, according to their needs. Work one-on-one with each athlete as necessary or requested for no extra charge 3. Create a healthy, competitive environment in which each athlete will strive to be their personal best. Simply teaching athletes to be competitive is not enough. They must learn how to be respectful and self-motivated athletes. To ensure that each athlete learns sports ethics, we strive to: Teach sportsmanship to every athlete Establish an environment that encourages, rather than intimidates Coaches will be motivational towards the athlete and pledge to never be pushy Keep failure as something that will not be punished or looked down upon, but used as motivation to improve 4. To maintain effective parent-coach relationships. The relationship between the parent and the coach is very important at AGC. To keep this relationship healthy, we pledge to: Have monthly parent-coach meetings to reflect on issues with each child Always have an open door policy to voice concerns Use problem-solving skills to work through issues