1.What is a limited liability company? Explain the advantages and disadvantages of this type of business ownership?
2.Compare and contrast the following forms of business organization: sole proprietorship, general partnership, limited partnership, limited liability company, and corporation as to ease of formation, liability of owners, management, and tax implications.
3.Andy wants to start his own business. He has decided to rent space in a "strip mall" and open a pet shop. Additionally, he will provide dog grooming services. He figures he can do almost everything himself, though he will need to hire a part-time employee on an "as needed" basis. His friend, Lacy, has agreed to work when needed.
Andy is considering operating his business as a sole proprietorship. What are the primary legal advantages and disadvantages to this form of business ownership for Andy's pet shop?
4.What is a corporation? Explain the advantages and disadvantages of this type of business ownership? Also, briefly discuss the limitations on a corporation electing Subchapter "S" status.
5.Jack and Jill were living together. Jack wanted to start a small retail store, but did not have good credit. Jill, whose credit was excellent, signed loan agreements with Jack so he could borrow the money to start the business. Jack used business cards that stated he was the "owner" of the business. He and Jill filed separate tax returns. Jack stated he was self-employed and claimed the business was a sole proprietorship. The money that was earned from the store was placed into a joint checking account owned and used by Jack and Jill. When there were significant decisions to be made about the business, such as deciding to franchise the business, the decision was made jointly by Jack and Jill.
Five years after the business was started, Jill left Jack. She claimed she was entitled to one-half the business's profits since she and Jack were partners. Jack disagreed and claimed they never had a partnership. Discuss Jill's claim.
7.Most of the goods contained in a freight train (a common carrier) were destroyed when a tornado wrecked the train. The carrier was sued for damages by all the shippers that had merchandise on the train. Is the carrier strictly liable for the damage done to the goods by the tornado?
8.Discuss whether or not the following common transactions are bailments and if so, who is the bailor/bailee, and what type of bailment is involved: |A) |Renting storage space in Farmer's Frank's huge barn to keep your classic car out of the snow and ice of winter. | | |The rental agreement provides for $100/month rent and Farmer Frank has the only access to the barn. | |B) |Hiring a moving company to move your belongings to a new residence. | |C) |Loaning your lawn mower to your neighbor. | |D) |Parking your car in a "park and lock" parking lot. |
9.Discuss the tenant's and the landlord's basic duties under a landlord-tenant relationship.
10.Sandra and Joe own a hobby farm as tenants in common. They also own a vacation home as joint tenants. What is the difference between the tenancy in common and joint tenancy?
11.The Rameys are selling their home. They did not set forth in the sales agreement whether the washer and dryer, the draperies, and a cherry corner cabinet which was in the dining room were to be included in the sale or whether they were planning to take these items with them. The buyers are claiming these items are fixtures and should stay with the house. The Rameys are claiming they are movable goods and they should not be part of the real estate which was sold. Define “fixtures,” identify the tests used to determine whether an...