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Jesus’s main message was:

Accountable Care Organizations (ACOs) and Patient-Centered Medical Homes are examples of integrated, interdisciplinary care approaches in which groups of doctors, hospitals, and other health care providers come together to give coordinated and high-quality care.

PBM cost control strategies may include drug utilization review, disease management programs, formulary management, and required use of mail order pharmacies.

The healthcare industry follows a perfectly competitive market structure.

QUESTION 4 – 8 POINTS    Van Effen Industries was a large manufacturer of plastic products for sale by large retailers throughout the Midwest region of the United States.  Van Effen manufactured, amongst other items, large plastic kayaks, outdoor playground equipment, and plastic coolers and chairs.  Van Effen was looking for a new Chief Financial Officer.  After a long search, Van Effen hired Dan Smith as its new CFO.   Amongst other job responsibilities, Dan Smith was designated as a senior executive who manages Van Effen’s financial activities including creating financial models and forecasts, establishing its plans for growth, ensuring the company’s cash flow met its needs, and overseeing the accounting department.   Dan Smith was paid a salary, before bonuses and benefits, of $650,000 a year.    When Dan Smith was hired, Van Effen presented him with a restrictive covenant agreement – also referred to as a non-competition agreement in the employment context.  Dan has his attorney review the agreement and after negotiating for certain changes, Dan Smith signed the agreement.  The agreement provided as follows:    You [Dan Smith] agree that for valid consideration including your salary and your bonus structure, that for a period of 10 months after you leave the employment of Van Effen or after you are terminated for cause, that you will not work as a chief financial officer, accountant, financial advisor, or in any other capacity as a consultant or advisor for financial matters for any company operating in the Midwest region of the United States for any company that is engaged in the manufacturing and sales of plastic products sold to large retail chains.   You [Dan Smith] agree that this provision is fair given our access to Van Effen’s financial information, oversight over the future of the company, and access to customers.            After 2 years, Dan Smith decided that he was unhappy at Van Effen.  He was approached by Mid-Country Plastics about coming to work with them as a financial advisor and consultant on strategic matters involving the company’s growth and cash flow.  Mid-Country Plastics was a plastics manufacturer that operated in the Midwest and directly competed with Van Effen.   Dan is considering leaving Van Effen to go work with Mid-Country.  Dan approaches you, as a friend, and asks for your opinion as to whether his agreement with Van Effen would prohibit him from working for Mid-Country.    REQUIRED (8 Points): You conclude that Dan Smith’s agreement with Van Effen would prohibit and restrict him from immediately taking the job with Mid-Country.   In separately lettered or numbered paragraphs discuss the reasons why you have concluded that Dan Smith’s non-compete is enforceable. 

QUESTION 5 – 7 POINTS Old Timey Music is a retailer of new and used musical instruments.   Old Timey is preparing for its upcoming black Friday sale.  Burley, on behalf of Old Timey, called Martin Guitars, a national manufacturer and retailer of acoustic guitars and instruments.  Burley, on behalf of Old Timey had a long conversation with Izzy, the Martin sales representative.  Old Timey and Martin agreed that Old Timey would purchase 55 Model O Martin Guitars at a discounted price because of the bulk purchase.  The guitars would be delivered on or before November 10.  After the call, Old Timey filled out a confirmation of order reflecting the conversation.  The confirmation of order identified the purchase by Old Timey of 55 guitars at a total price of $31,000.   Old Timey signed the confirmation of order and sent it to Martin, which received the confirmation of order on October 20.  On November 11, Old Timey had not heard anything from Martin and had not yet received the guitars.  Old Timey reached out to Martin and was told that Martin would not go through with the sale because they were upset that their sales representative agreed to such a large order at such a low price.  Martin now claims that it does not have to sell the guitars to Old Timey because it did not agree, in a signed writing, to the sale. REQUIRED (7 Points): Is Martin correct in asserting the statute of frauds as a defense because it did not sign anything in writing? Explain your answer.

Anne LLC purchased computer equipment (five-year property) on August 29 for $34,000 and used the half-year convention to depreciate it. Anne LLC did not take §179 or bonus depreciation in the year it acquired the computer equipment. During the current year, which is the fourth year Anne LLC owned the property, the property was disposed of on January 15. Calculate the maximum depreciation expense. (Use MACRS Table 1.) Note: Round final answer to the nearest whole number.

QUESTION 3 – 10 POINTS     Sara Silver formed her business, Sara’s Magic Elixirs, Inc. in 2018.  Since that time, Sara’s Magic Elixirs has manufactured and sold Sara’s Silver Cream which is a hand cream that is sold as a “Cure-all for dry and cracked skin.”  Sara’s Silver Cream was the only product that Sara’s Magic Elixirs sold and the product was very successful.   Sara’s Magic Elixirs claims that its cream includes a secret formula based on the healing power of silver and that each container includes 10mg of actual silver.  In 2023, Sara Silver approached Paul George about buying her company.  Over the course of three months Sara Silver provided Paul George with substantial financial information on her company, Sara’s Magic Elixirs, Inc., and permitted Paul George with access to the company’s research and development facilities.  George had signed a non-disclosure agreement that enabled Sara to share substantial due diligence and material with George.  By November 2023, George had seen enough and offered Sara $16 million for her company but only if the deal could close before December 31.  The parties scrambled to get everything together so they could close (complete) the sale of Sara’s Magic Elixirs to Paul George before the deadline.  A sale was scheduled for the afternoon of December 31 and all parties were scheduled to meet and sign all documents required to transfer the entire company to Paul George effective that date.   On December 29, 2023, Sara Silver received a certified letter from the Food and Drug Administration (“FDA”).   The letter stated that the FDA had been engaged in a year-long analysis of Sara’s Silver Cream and that there was substantial credible evidence that Sara’s Silver Cream may cause significant skin issues and that the FDA was in the process of commencing further enforcement actions to force Sara’s Magic Elixirs to stop selling Sara’s Silver Cream.    The FDA letter informed Sara’s Silver Elixirs that it must maintain all business and financial records and that it should not engage in anything to destroy or otherwise transfer business and financial records.  Sara Silver was very upset with this letter and she decided not to share the letter or the information in the letter with anyone.  December 31, 2023, Sara Silver and Paul George closed the transaction on Paul George’s purchase of Sara’s Magic Elixirs.  Two months after purchasing the company, Paul George learned of the FDA efforts to bank Sara’s Silver Cream.  The FDA issued a press release notifying the public of its findings and it commenced actions against the company to stop the sale of the hand cream.   Paul George has learned of the letter that Sara Silver received before the sale of the company.  Paul George has sued Sara Silver for fraud. REQUIRED (10 Points): Will Paul George prevail? In separately lettered or numbered paragraphs, discuss each of the elements of Paul George’s fraudulent misrepresentation lawsuit.  FOR PURPOSES OF THIS QUESTION, IGNORE THE POSSIBLE APPLICATION OF THE ECONOMIC LOSS DOCTRINE AND IGNORE ANY CLAIM FOR NONFRAUDULENT MISREPRESENTATION.

Clay LLC placed in service machinery and equipment (seven-year property) with a basis of $3,485,000 on June 6, 2023. Assume that Clay has sufficient income to avoid any limitations. Calculate the maximum depreciation expense including §179 expensing (ignoring any possible bonus depreciation). (Use MACRS Table 1.) Note: Round final answer to the nearest whole number.

Jane, age 16, was abandoned by her parents when she was very young and has essentially been living on the street since then doing odd jobs just to get by.  Jane has saved up some money, and using these savings she finally was able to purchase shelter to live in.  Jan purchased a used mobile home to live in from a mobile home dealer for $15,000 – a price that was not reasonable given the condition of the mobile home (but Jane did not realize this). Six months later, Jane has decided she wants to disaffirm the contract.  Which of the following statements is correct?