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Scooters Sunset Motors Case Study


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Scooters Sunset Motors manufactures motorcycles; however, they discovered a new market for gas and electric scooters that can be used for transportation on city streets. Two models of electric scooters are available, 600 watt and 750 watt. Both models come complete with lights, brakes, and pedals and can transport up to 2 people. The electric scooters can reach speeds up to 20 MPH. Gas scooters come in two models that come equipped with the same features as the electric models. The 49 cc model reaches speeds of up to 35 MPH and the 50 cc model reaches speeds up to 40 MPH. Based on your research, readings, and the above scenario, answer the following questions: Part I Are any of the scooters subject to NHTSA regulations? Why or why not? Using the state of Florida, South Carolina, Virginia, Indiana or your own state, locate state, county, or city ordinances that provide the rules for using scooters. Identify the requirements for registration and licensing, insurance and driver’s licenses in order to operate the scooter. Note: Laws vary based on state and type of scooter. What are the advantages and disadvantages for allowing scooters to use public roads with other vehicles? Provide support for at least one of your reasons. Part II Sunset Motors is considering expanding their business to Korea. The scooters and replacement parts would be manufactured in the United States; however, Sunset is considering the addition of a parts manufacturing facility in Korea. In negotiating a contract with their Korean partner, Sunset Motors expressed a desire to include an arbitration agreement where any disputes would be resolved in the United States. Based on your research, readings, and the above scenario, answer the following questions: What are the contractual and dispute resolution issues Sunset Motors must resolve? Which of the following issues might apply to Sunset Motors and their import or export transactions with Korea? Explain at least two. Export regulations and licensing Intellectual property Barriers to trade Expropriation Foreign Corrupt Practices Act Free Trade Agreements


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