Question

Torts R Us is a law firm formed by limited liability partnership law. The owners, all attorneys, have decided to have a manager-managed organization with Tanya Nordstrom chosen to be the manager. One of the partners, Simon, just purchased a $20,000 software package to assist the frim with their information technology needs without telling Tanya or getting her permission. Tanya has already chosen another software package and entered into a contract for the purchase of that software package on behalf of Torts R Us. Who is responsible for paying for the software Simon purchases?

Answer 1

From the given question it was clearly explains that TortsRUs ia small organization with limited people and the organization is running on patnership.The Torts R Us owners and all attorneys decided to have a manager for their small organization,who can manage all the organizational related works and run the organization.They hired Tanya Nordstorm as their organization manager.As a manager her tasks and roles are already explained to the managers when they have a meeting with the owners and atttorneys.As a small organization their access limits ,and policies are also limited to the organization.In that one of the partners named Simon,thought of there is a requirement of software package to organize the things and manage organization data in order to store the in and out activities of the organization.

The mistake that was done by Simons atleast he would have informed that he has purchased a software package as per the information technology to assit the organization without telling anyone including Tanya,As Tanya is not aware of this she also felts that there is requirement of the software package to fulfill the organizational needs.She has entered into the contract with the company for purchase of the souftware on behalf of Torts R Us.

The case clearly says that Simon is one of the owner in the organization and has equal rights to do anything and can take any action on behalf of the organization.Partners in the organization will have all rights to move forward and take the step for the improvement and development of the organization.He has to consult,but in few cases he has complete rights to do as per the industrial requirements.So in these case Simon is not responsble for the payment.

Tanya as a general manager,she would have consult before signing or purchasing anu softwares that are used for the organization.Her access and rights on the organization are limited,compare with the owners of the organization.

Based on the company size and organizational requirement related softwares or anything else will take care by the top management in the organization.

Most of the organizations do follow the same in order to purchase for the benifit of the organization it would be always the top management that take decisions.

Here in this senario there is no mistake from Simon being in the top management he has complete rights in purchase of the software.But as a gereral manager,has to consult and sit with the top mnagement in order to purchase or do any changes to the organization with the approval of top management.

Simon being in the top management he need not to consult and get the approval to purchase the products or softwares that are usefull to the organization.