Preview

Business law Ch 4

Satisfactory Essays
Open Document
Open Document
350 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Business law Ch 4
The Legal Environment of Business
Week Four Chapter Questions
17-3. Daniel is not liable for the debt Rubya defaulted on. The contract did not make Rubya a partner, even those she was given profit sharing and management responsibilities, she did not poses any ownership of the business. Also under UPA 202(c)(3) no presumption of partnership is made since the profits are wages of an employee or for the services of an independent contractor. Not to mention Daniel did not have any knowledge of the credit extended to Rubya.
17-4. The relationship between sole proprietor and sole proprietorship is that the sole proprietor assumes complete ownership of the sole proprietorship. The owner is the business. The proprietor reports income as personal income, is personally liable for all debts, and has unlimited liable for all obligations of the proprietorship. Property of the proprietorship is essential an extension of the proprietor. With that said the courts may find that the proprietor had intentions of selling the bike making it proprietorship property, making it covered under Ferguson’s insurance.
19-1. Incorporating as a limited liability corporation has its advantages of protecting the shareholders more so than a partnership. Also if they were to create an S corporation they would be able to avoid being double taxed. Income would pass through shareholders like a partnership, paying personal income taxes on it.
20-1. No there was never a contract between Wade representing Gett for the purchase of the coin, because even though Gett is interested in purchasing coin Wade acted on his own in representing Gett. There was never ratification between Gett and Wade. Therefore Wade was never an agent for Gett.
20-5. Knutson an agent of Dennegar, who was given the authority to manage the house hold’s financials as well as the mail. Knutson also had the authority to sign Dennegar’s checks. Under implied authority, Dennegar is liable to New Century Financial

You May Also Find These Documents Helpful

  • Good Essays

    Business Law

    • 911 Words
    • 3 Pages

    C. A note executed by Adams, Burton, and Cady Company, a partnership, for $1,000, payable to the order of Davis, payable only out of the assets of the partnership.…

    • 911 Words
    • 3 Pages
    Good Essays
  • Good Essays

    Ch 9 Business Law

    • 1559 Words
    • 8 Pages

    If a voidable contract is avoided, the promisee, but not the promisor, is released from it. False, both parties are released from it…

    • 1559 Words
    • 8 Pages
    Good Essays
  • Good Essays

    Business Law Homework 2

    • 736 Words
    • 3 Pages

    Recovery of damages in negligence requires proof by a fair preponderance of the evidence that the actor lived a duty of care to the victim, which was breached by the actor’s failure.…

    • 736 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    Business Law Assignment 1

    • 1063 Words
    • 5 Pages

    SECOND: This corporation is formed to engage in any lawful act or activity for which a corporation may be organized under the Business Corporation Law, provided that it is not formed to engage in any act or activity requiring the consent or approval of any state official, department, board, agency or other body without such consent or approval first being obtained.…

    • 1063 Words
    • 5 Pages
    Powerful Essays
  • Good Essays

    As it seems to me, Mr Sleater was the manager of Atlas Capital and he was the one that signed the two promissory note for the value of 4,000,000 as the maker of the notes. The blocks of notes read “Weston Wade Sleater & Atlas Marketing Group, L.C,” but the signature was only done and signed by Mr Sleater which made him the maker of the note that he failed to pay. So Mr Sleater should be held accountable for any inconvenience that was make with the note. If another person’s signature was with his both people would be held accountable due to the fact two signature that may have let him off the hook by failing to pay for the note and let someone else be held accountable. In this case it may be a possibility that the person that suit the company may either go after Mr Sleater’s personal assets or the company’s assets if they fail to make the payment due to bankruptcy.…

    • 488 Words
    • 2 Pages
    Good Essays
  • Powerful Essays

    Business Law Assignment

    • 2505 Words
    • 11 Pages

    The concept of insurable interest and the alleged need under Scots law for the requirement of insurable interest by the insured in an insurance policy, have recently come under scrutiny. Why is this, and what should be done about the problems arising from the requirement for insurable interest? How realistic are the proposals for reform?…

    • 2505 Words
    • 11 Pages
    Powerful Essays
  • Best Essays

    The general rule is that an agent is either liable under, or entitled to enforce, a contract he makes on behalf of his principal. An exception to the general rule is that an agent may enter into a contract on his own behalf as well as on behalf of the principal; and so be liable or entitled under the contract. Discuss this statement in light of the relationship between an agent and the principal you have learnt.…

    • 2707 Words
    • 11 Pages
    Best Essays
  • Good Essays

    Company Law Assignment 1

    • 1434 Words
    • 5 Pages

    Sarah, Jane and their employees of a company are separate legal entity to the Sarah Jane Pty Ltd therefore, it allows Sarah, Jane and employees to have contracts with their own company.…

    • 1434 Words
    • 5 Pages
    Good Essays
  • Powerful Essays

    The relationship between a principal and an independent contractor may or may not involve and agency relationship…

    • 1489 Words
    • 6 Pages
    Powerful Essays
  • Good Essays

    Business Law Case Study

    • 468 Words
    • 2 Pages

    ABC and co was partnership firm which had dealership of Scooters Company ltd, bought a second hand scooter from Mr. B. ABC and co reconditioned and repaired the scooter. And sold it to Mr. A for Rs 50,000. ABC and co told Mr. A that the scooter is a new scooter. Is Mr. A a consumer? And does he have any remedy under consumer protection act…

    • 468 Words
    • 2 Pages
    Good Essays
  • Good Essays

    Corporation Law Lawer

    • 805 Words
    • 6 Pages

    • And the specific to the business of the corporaton that they work for ……

    • 805 Words
    • 6 Pages
    Good Essays
  • Powerful Essays

    Legal Issues - Business Law

    • 2688 Words
    • 11 Pages

    A principal is the party who employs another person to act on his or her behalf; an agent is a party who agrees to act on behalf of another. In order for the agent to successfully fulfill their tasks for their principal’s they have duties that they are expected to fulfill. The duty to obey instructions, to act with skill, loyalty, protects information, to notify and give information and to be accountable for their actions. An agency is the principal-agent relationship, which are formed by the mutual consent of a principal (employer) and an agent (employee). Agency Law is a large body of common law, which is a mixture of contract law and tort law that governs the agency (Cheesemen, 2004). This law separates and regulates the relationships between agents and principals, agents and third parties and principals and third parties. An agency law exists because it is impossible for one person to travel everywhere to negotiate all transactions to maintain and grow the business. With the many travels there are relationships that are established and maintained.…

    • 2688 Words
    • 11 Pages
    Powerful Essays
  • Satisfactory Essays

    Topic Topics 1 and 2 Introduction and Legal skills Seminar question given to students In 1998 the Federal Parliament appointed a special committee to look into the magpie problem. After months of serious investigation, the committee presented its report to Parliament. The following is an extract from the report We have heard a great deal of evidence and we are satisfied that there is a need for strong legislation to protect the Australian public from magpies during the breeding season ... None of the provisions of the proposed new Act will apply to magpies kept by members of the public as pets .... In August 1998 Parliament passes the Magpie (Protection of Public) Act. The Act receives Royal assent on 15 August 1998. Section 3 of the Act provides that Any householder, flat occupier or other person who permits a magpie to remain on his property at any time during the months of August, September or October without reporting the matter to the Department of Environment and Conservation shall be guilty of an offence. There is no reference in the Act to magpies kept as pets. During October 1998 Jerry owned a pet magpie which he kept in a cage at his Brisbane home. He has not notified the Department of Environment and Conservation that he owns a magpie. Has Jerry breached the Act Apply (a) the literal rule, and (b) the purposive approach. Issue 1 Has Jerry breached the Act according to the literal rule Law According to the literal rule of statutory interpretation, we should always begin by reading a legal text literally, with words and phrases given their ordinary and natural meanings Fisher v Bell 1961 1 QB 394 Application Did Jerry permit a magpie to remain on his property (explain your reasons based on the facts of the problem) Does the natural and ordinary meaning of a magpie include a pet magpie as the one in Jerrys house Has Jerry breached s 3 of the Act Conclusion Include the consequences of the conclusion. Issue 2 Has Jerry breached the Act according to the…

    • 545 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    BUSINESS LAW 201

    • 4396 Words
    • 18 Pages

    A case between 2 individuals or an individual and the government discussing the rights of the individual…

    • 4396 Words
    • 18 Pages
    Powerful Essays
  • Good Essays

    The liability of the proprietor for the debts of the business is unlimited. The creditors have the right to recover their dues even from the personal property of the proprietor in case the business assets are not sufficient to pay their debts.…

    • 12488 Words
    • 50 Pages
    Good Essays