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Ways in which a business might be structured
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Case Studies
Shauna Senior
South University Online
Business Law II | BUS2038 S01
Week1 Assignment 3 Case Study 1
Professor: Cheryl Olsen
September 22nd 2015 Case Study 1: Legal Studies
Scenario 1
Sophia’s options if the Retirement Living partnership cannot pay the $50, 00 would be to go after the partner’s personal assets such as cars, homes and even their bank accounts. Sophia could also get the local Sheriff or courts, to assist her in garnishing personal wages if they have any. “Generally, the members of a partnership are exposed to unlimited liability for the acts of the partnership as a whole. This means that if the business as a whole becomes indebted and insolvent, the partners' personal assets might be exposed to cover the debts.” (smallbusiness.com). Sophia, will not win if she tries to collect the entire debt from Blanche as she is just one of the partners of three if it’s a general partnership then everything is equally shares including the profits and losses gained. Only if, the partnership is limited liability then yes she can go after Blanche for the entirety of the balance. “In limited partnerships (LPs), at least one of the owners is considered a "general" partner who makes business decisions and is personally liable for business debts” (Nolo.com)
Blanches option if
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In this case perhaps McCoy would wish to be a limited partner and be removed from the day to day operations. An option he could choose could be to be a Limited Liability Corporation, may come with additional costs, work and headaches, but even so as we with any business it has its advantages, which includes the flexibility of who manages the business, can be easier to raise capital and add or transfer ownership interests. Owners are no longer liable for business debts, but the
This is a complex case, involving multiple parties and several variables that need to be examined thoroughly. The parties mentioned include Knarles operator of the facility maintenance company, his son Barkley, their employee, a licensed plumber, and Mr. Chetum. Although in the end Chetum is suing the facilities maintenance firm for a breach of contract, all factors must be examined to determine proper fault.
According to the Regs. §1.708-1(b)(4), if the partnership occurs such a Technical Termination, “The partnership contributes all of its assets and liabilities to a new partnership in exchange for an interest in the new partnership; and, immediately thereafter, the terminated partnership distributes interests in the new partnership to the purchasing partner and the other remaining partners in proportion to their respective interests in the terminated partnership in liquidation of the terminated partnership, either for the continuation of the business by the new partnership or for its dissolution and winding up.” Thus, it becomes a deemed new partnership.
Given the situation, as manager of the office, Sara must talk to Nell and tell her that she can not allow her to stay doing her work because she is not fit to comply with them due to her drunken state. However, you must ask her to leave the office and return the next day when she is already sober to talk about the particular situation.
As such VGV’s action of selling the molding machine and filing bankruptcy does not breach the Bankruptcy Act. Although legally strategic, it was still an unethical decision (Renshaw, Kubat & Angellatto, n.d.). When a company files for bankruptcy as noted in chapter 7 of the bankruptcy Act, it means that the company is badly in debt unable to pay its creditors and as a result the appointed trustee is generally tasked to sell the business assets and distribute the proceeds to its creditors(United States Courts, n.d.). If VGV operated ethically, they would have reserved the molding machine to sale by the trustee so as to try as much as possible to pay off its debt to Dracca. Instead the company chose to sell the machine at significantly lower price to another company and pocket the money. Obviously, it now means that Dracca may never be able to get the money VGV’s owes them. VGV’s has already resold the machine and in addition filed for bankruptcy which as laid out in chapter 7 can help a the business relieve liability for some of its business and personal debt tied to it although not entirely (Madden, 2009). Considering the two businesses had good business relationship that is what prompted Dracca to extend a credit
In the world we live in today lawsuits are prevalent and being sued by someone could cause the business to fold. It would be wise for one to obtain all the knowledge before starting a business and it is a reason why people use the term “knowledge is power” (Clarkson & Miller, 2012). As individuals, when we lack knowledge we perform practices unknowingly which could lead to major lawsuits. Ownership of a business can be formed as sole proprietorship, partnership, or corporation. Potential great profit is the reason most people want to start and some do start corporations. One must have knowledge, and understand business law in order to have a positive outcome with operating an organization (Clarkson & Miller, 2012).
The stakeholders identified were the customers (as a group), Ming and Roger. Ming’s wife was not included as it appeared, through the information given, that her happiness would align with that of Ming’s and as such, the outcome would be no different from her inclusion. The scale used was from -10 to +10, from deeply unhappy to very happy. From the information in the table it can be shown that the action which would create the greatest amount of happiness overall would be for Ming to not tell the customers about the cheaper medication.
The senior citizen in this scenario is not responsible for $500,000, simply due to his age and mental condition. First, the senior citizen would be entitled to indemnification which according to Cornell University Law School “To indemnify another party is to compensate that party for loss or damage that has already occurred, or to guarantee through a contractual agreement to repay another party for loss or damage that occurs in the future.” (Cornell University Law School, 2017). This basically, secures the senior citizen against any lawful responsibility for his actions.
In this case Maya (agent) is technically in the wrong as she has overturned her authority due to her not being permitted to order very expensive shampoos and shower gels and any orders that are over £150 the agent has to receive permission from Kallessi (principle). However since the principle has paid for the first 2 orders that the agent has made with the new suppliers it is seen as if the principal is ratifying the situation and agreeing on the agents terms. Ratification is when the principal approves of an act of its agent where the agent lacked authority to legally bind the principal. (www.lawofbusiness.com)
Partnership is also what he can go into but he will need to find someone who will go into partnership with him as two people are required in order for it to be a partnership. The partnership Act of 1980 defines a partnership as ‘the relation which subsists between persons carrying on a business in common with a view of profit’.
Law Case Study Ian, an investment broker, was approached by Victor who asked him whether he should invest in Wonder Electronics Ltd. Ian said  “ You certainly should, Lord Wellybob is a director. It is a very sound company.
A partnership is very similar to a sole proprietorship except that that there are two of more owners. It is defined as a voluntary association of two or more persons to carry on as co-owners in a lawful business for profit. The people involved in the partnership are called the partners and they are considered agents rather than employees of the partnership. The way partnership gains and losses are split are described in the partnership agreement. This agreement can be an informal oral agreement or a lengthy, formal written document. There are a few types of partnerships. A general partnership which is created to carry on a particular kind of business; a special partnership which is created for a single transaction; a trading partnership which is created for buying and selling purposes; and a nontra...
Companies are enterprises, also the legal person, so companies are business entity. It’s also as the business entity, different with other non-business legal person in sociality, for example: Swansea University and Morrison Hospital. Company as business entity, the distinction with non-business legal person is business is profitable legal person; A company is an artificial person. Once it is incorporated by complying with the prescribed procedure, its come into being and is a separate legal entity from its members and officers. This principle distinguishes a company from a partnership.
In today’s business world there are numerous ethical issues that have a chance of arising which may turn into legal battles. This is why organizations should strive to give their employees a clear comprehension of the company’s overall vision and mission. This will help employees in practicing the proper code of ethics as well as procedures and policies in the workplace. Companies must also strive to deliver the highest level of ethics in a continued basis which provisions customers, employees, and applicants that are entitled to them in under fair business practices. The focal point for businesses it to uphold the values of responsible and fair business practices. This paper will examine the ethical and legal theories that apply to the business situation in order to broaden the insight of how it could have been avoided. The company that is taken into consideration is Coca-Cola in which the company was recently sued for racial discrimination workplace environment.
Always seek legal counsel when forming a partnership. A partnership is terminated upon the death, incapacity, or withdrawal of any partner. These occurrences require liquidation or reorganization of the partnership. Be aware that liquidation can result in substantial losses to the remaining partners.
The purpose of restraint of trade is merely to limitate any future activities of commercial trade, social activity and etc in particular region of a state, or any activities that has substantial impact on local commercial trade or activities. A restraint of trade can be assumed as legal or illegal depends on its effect and attention.