legal studies

Topics: Corporation, Limited liability partnership, Partnership Pages: 3 (1169 words) Published: June 16, 2014
A.Liability Under Partnership
Joe Roberts and Dr. Donald Jones have a general partnership over Tyler's Sports Bar & Grill. This is, "an association of two or more entities to carry on a business a co-owners " (Hodge, 400). Roberts and Jones did not create a partnership agreement when opening the business. Off of the record they agreed that Jones would supply all of the start up money for the business and remain a silent partner while Roberts ran and managed the Bar and Grill. Dan Davidson was a guest at Robert's establishment where he attained a blood alcohol content of .16 before killing Sara Smith with his vehicle. Because the family of Ms. Smith may be looking to sue both Joe Roberts and Dr. Jones for liability for the accident that Davidson was involved in.

While Roberts is the manager of Tyler's Sports Bar & Grill and is in charge of operation, both Roberts and Jones are general partners for the business. "Three rules for liability in a partnership are: 1) Every partner is liable for his or her own actions. 2) Every partner is liable for the actions of the other partners. 3) Every partner is liable for the actions of the employees of the business" (QuickMBA, 3). The rules of a partnership state that if one partner breaks a law, the other one is responsible for that as well. The issue that Roberts and Jones are faced with is liquor liability. "The cash bar provider is responsible for all activities, including age verification and addressing intoxicated guests. The cash bar provider assumes virtually all alcohol-related liability" (Caudle, 2). For Davidson to be able to reach a blood alcohol level of .16 he would have been visibly intoxicated. Roberts' and his employees continued to serve Davidson although the risks were visible. Davidson then left the business intoxicated and involved himself in an accident. This leaves both Joe Roberts and Dr. Donald Jones responsible for the actions of Dan Davidson as a third party. "Section 47 P.S. 4-497 provides as...
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Legal Method Assignment Essay

    ...terms ‘judicial activism’ and ‘legal formalism’, and I will discuss their merit and usefulness in assisting in the analysis of judicial method. In my opinion, both terms are mere labels used to insight emotion, the term ‘judicial formalism’ is used to describe followers of ‘strict legalism and high technique’, as said by Sir Owen Dixon,1 and the term ‘judicial activism’ is used to label those who believe the law to be a living organism effected by external factors. 2 Firstly, I will begin by analysing the label of ‘judicial formalism’. Sir Owen Dixon stated that formalism is the application of ‘strict logic and high technique’, which is taken to mean that formalism advocates strict and complete adherence to legal doctrine and precedent. 3Opponents of formalism claim it to be the unrealistic and idealised notion that legal reasoning is an autonomous, neutral and rational process that is to be distinguished from the partisan and arbitrary world of politics. 4 Formalism is based on the premise that the law exists in suspended animation cut off from all socioeconomic factors. 5 As a result of this premise judicial formalism is heavily criticized as being unrealistic and it is claimed that its implementation would render the law incapable of keeping pace with society. Honourable Justice Michael Kirby claims it to be a legal philosophy, which has far outlived any useful application it may have once had in assisting in...

    Read More
    1022 Words 3 Pages
  • Legal Structure Of Business Organisations Essay

    ...Legal Structure of Business Organisations Sole Traders General Partnerships Limited Patnerships Limited Liability Partnerships Companies Key Legislation General Law of Contract Partnership Act 1980 Limited Partnerships Act 1907 Limited Liabity Partnerships Act 2000 Companies Act 2006 Liability Unlimited Liability Each Partner jointly and severally liable Limiteed Liabiliy for limited partners and unlimted liability for general partner Limited to the amount tas they have agreed Depending on the type of company Separate Legal Personality No No No Yes YEs Taxation Forms of business organisations Sole Traders A Sole Trader is a one-person business where an individual makes a contract in his own name. There is no legal filing requirements Partnerships Partnerships are governed by the Partnership Act 1890 unless excluded by the partnership agreement. A partnership is defined in s.1 as ‘the relationship which subsists between persons carrying on a business in common with a view of profit.’ Comppanies Companies are governed by the Companies Act 2006. A company can be limited or unlimited, limited by share or by guarantee. The corporate veil On incorporation, following a prescribed registration process, a company becomes a separate legal entity, which is distinct and separate from its shareholders. The procedures for setting up a private company S.7 of the CA 2006 states that...

    Read More
    574 Words 3 Pages
  • Choosing a Legal Form of Business Essay

    ...CHOOSING A LEGAL FORM OF BUSINESS Choosing a Legal Form of Business Dannie L Holmes CHOOSING A LEGAL FORM OF BUSINESS Abstract Many of us probably have the thought of becoming an entrepreneur. With this thought comes many questions and you must have a plan. Let us say that you have an idea for a new kind of home appliance. You are convinced that this new technology idea would be applicable in a wide range of other products. With this idea in mind you have a few issues. You have little financial skills and no management skills. You know nothing about manufacturing other than that it costs lots of money to set up a plant. Also, your net worth is not very high so you have no idea if you will be able to fund this start-up. So you must look at every aspect before making a decision on what would be the best business type, short term and long term. CHOOSING A LEGAL FORM OF BUSINESS Discussion Starting a new business in either type, (sole proprietorship, partnership, and corporation) each have its ups and downs. All entrepreneurs must decide which form of legal ownership best suits their goals. Take a look at sole proprietorship. This type of business is owned and usually operated by one person. That one person is also responsible for all of its debts. It has a low start-up cost but its hard to borrow money to start up or expand. Now let us move on to...

    Read More
    703 Words 3 Pages
  • Legal Forms of Business Paper

    ...Legal Forms of Business Paper Law/531 June 3rd, 2011 University of Phoenix Legal Forms of Business Paper Selecting the best form of operating a business depends on the type of business the owner wants to run. The owners have to pick the structure that best meets their needs. “The selection depends on many factors, including the ease and cost of formation, the capital requirements of the business, the flexibility of management decisions, government restrictions, personal liability, tax considerations, and the like” (Henry Cheeseman, 210, p. 529) Moreover, choosing the right form to run a business will also determine how the business is organized, how the cash flow is, and how the business is taxed. “The most common forms of business organization are: sole proprietorship, general partnership, limited partnership, limited liability partnerships, limited liability company, and corporation” (Henry Cheeseman, 210, p. 529). According to the situation given, the best form is limited partnership. Limited partnership refers to the types of owners the business will have, general (managers) and limited partners (investors). In this sense, Monica, and Susan will be the managers of the businesses because they both will operate the business with their skills, Susan with her computer graphics skills and Monica with her marketing skills. Whereas Vic will be the investor providing some capital to run the business, she will not be...

    Read More
    939 Words 4 Pages
  • Essay on Legal Forms of Business

    ...Legal Forms of Business Tim Yeakley AIU Online Abstract There are three different legal forms of business and all vary in levels of liability, ownership, and P&L control. An inventor who has developed a new product needs to determine the proper form of business to establish. The inventors’ situation is unique and narrows his choices of business types due to his lack of financing, business skills, and family. The three types of business he would have to research are sole proprietorship, partnerships, and corporations. Each type of business has advantages and disadvantages depending on the specific needs of the business owner(s). The inventor should consider the limited partnership business type as this would, provide resolution to his need for experience, financing, family time, and marketing. Legal Forms of Business A stay-at-home family man and inventor has discovered an idea that would enhance the home appliance industry. The inventor is being faced with several issues about starting his own business and will need to understand the Legal Forms of Business before proceeding to the next step. The inventor has no business skills, lack of startup funding, lack of manufacturing experience, and does not want to disrupt his family life. There are three different forms of business ownership that we will discuss and there are pros and cons to each. The first form of business we will discuss is the sole...

    Read More
    900 Words 4 Pages
  • Legal Underpinning of Law Essay

    ...Legal Underpinnings of Business Law Valarie Murphy-Taylor BUS 670 Marla Muse June 09, 2014 Abstract The aim of this paper is to discuss business structure and organization and how liability differs between each organizational form. Society has set standards that govern our interactions with others. In addition, though not often obvious to the naked eye, most businesses have standards that similar to one another in governing their activities and abilities to function continually. The state of origin joined with the type, scope, and form of business ultimately defines the standards by which a business will abide by. Looking at the various levels of responsibility dispersed to proprietors and partnerships aids in laying down the foundation for choosing the most applicable organization form recommended to graphically design and market a business. It has been said that knowledge is a powerful possession for one to have. Successful business leaders that are armed with advanced levels of knowledge are more equipped to lead businesses to success. Organizational leaders must also possess some aspect of knowledge of business law in the modern world in order to function. “In fact, anyone that embarks on a professional career, whether in medicine, science, government, or accounting, will benefit from knowledge of contracts, real property law, landlord-tenant relationships and other significant legal matters.”...

    Read More
    1937 Words 6 Pages
  • Legal Forms of Business Paper

    ...Legal Forms of Business Paper N.R. LAW/531 January 21, 2013 Jonathan Mc Govern When seeking to operate a business or operation, there are several structures to take into consideration. With each one, there are advantages and disadvantages concerning profit, tax and other legalities. Some type of legal configuration must be adopted by any business to define the liabilities and rights of the people participating in the ownership, personal liabilities, financial structure, life span and control of the business. It is in the best interest of the business owner to form businesses that could optimize profitability, secure personal assets and minimize financial lost. When selecting the wrong form of nosiness, individuals risk losing assets in an effort to settle financial settlements and lawsuits. Within this paper, scenarios will be formed to demonstrate the different forms of business such as Sole Proprietorship, Partnership, Limited Liability Partnership, Limited Liability Company, S Corporation, Franchise and Corporate Form. Sole proprietorship is defined by an individual or a married couple who is responsible for the day-to-day operation of the business. As the easiest way to form and run a business, sole proprietorship allows the business owner(s) to have ownership of all the business assets and profits that it generates while also taking full responsibility of any debts or liabilities inherited (Kenner & Speck,...

    Read More
    1219 Words 5 Pages
  • Legal Forms of Business Essay

    ...Legal Forms of Business LAW/531 Business Law March 4, 2013 Dr. Linda Fried Legal Forms of Business Businesses exist and managed in many of the same ways. However, there are many formats that businesses are operated in. From sole proprietorship to different partnerships to corporations, each form has many similarities, but they are very different types of businesses. Each business entity will vary on three primary factors: liability, taxation and record-keeping (Entrepreneur, n.d.). Let’s review each format and some sample businesses operating under each type of format. Sole Proprietorship According to the SBA (n.d.), a sole proprietorship is the simplest and most common structure chosen to start a business. Sole proprietorship consists of one owner who assumes all personal liability for the business. This means that the debts of the business are also debts of the owner. Many barbers operate under a sole proprietorship. If he or she wants to operate their barbershop under a different name, they must file the appropriate paperwork in the county of their business. Partnership When two or more people want to operate a business together, they may form a partnership. It is a good idea to create a partnership agreement that will entail how future business decisions will be made, including how the partners will divide profits, resolve disputes, change ownership, or even dissolve the business (SBA, n.d.). A partnership can be...

    Read More
    925 Words 4 Pages

Popular Essays

Become a StudyMode Member

Sign Up - It's Free