Bus company A donates a school bus for raceing them at racetrack F.School students tear down and modify the buses to be raced by 6 school districts.Race track F charges admission to the race for $25 for adults.Is there any violation if Law ?
1 Answer from Attorneys
Yes, if don't have all the right permits, including child labor ones for the students engaged in a "for profit" enterprise, you could run into all sorts of problems. If the schools are engaged in a for profit activity, they need to be careful about their nonprofit status, as well, and employ an experienced accountant or lawyer to guide them through all the tax ramifications. Racetracks also face face hundreds of regulatory requirements. Other than that, it sounds like a lot of fun, and great career training for students hoping to become diesel mechanics!
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