Question

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Instructions

Review the following scenario and respond to the follow-up questions in an APA formatted report of 2400-2600 words . Students will also submit a PowerPoint presentation of no more than 8 slides summarizing the case and your response, to be posted and discussed by peers in Unit 11.

Case

Tom, D*ck, and Harry have been best friends since kindergarten. Tom is the business brain of the group. D*ck is the mechanical one and Harry is the creative one. All grown-up, the boys decided that they should start making some serious money to provide for their expanding families. The boys decided that they salvage small scrap metal pieces, nuts, and bolts from junkyards and salvage yards which Harry would design and D*ck would cast and weld into decorative art pieces. Tom will raise money from friends and family and look for distribution channels. D*ck has a step-daughter, Dorothy, who is 16 and mechanically inclined as well. Dorothy could be D*ck’s apprentice. Harry’s wife, Helen, is a recent BBA graduate from Yorkville University specializing in marketing and she could be recruited to help with sales and marketing. Helen’s good friend, Fern, is an award winning designer with a national home decor chain who the group might be able to induce to join them. Tom’s twin brother, Tim, recently won the lottery and is pursuing his dream to be a photographer. Dick’s wife, Janine, is a real estate agent; she believes she has found an old warehouse in the industrial part of town that could be turned into their headquarters. The owner of the warehouse, Jordan, is retiring and open to the idea of selling or renting the space.

How might the business be structured? What might be some of the legal issues that could arise in operating the business and selling the product? What are some of the agreements that might be needed?

Answer 1

Tom, Dicky, and Harry are members of We Restore, an everlasting relationship. Harry has undertaken to restore a valued painting for a client in the course of the partnership business. Harry negligently executed the job and irreparably ruined the artwork. The client wants to sue for both torture and contract violation. Explain We Restore, and Tom, Dicky and Harry 's future responsibility on the grounds that:

(A) The business is an unlimited partnership;

Owners in a (unlimited) relationship have full legal liability. Each partner in a relationship shall collectively be responsible for the obligations of the relationship. Joint responsibility means we will sue the parties as a party. Several obligations mean the couples are collectively responsible. In several jurisdictions, each partner is collectively and severally responsible for the losses arising from other parties' negligence, including the partnership's debts including responsibilities.

The three relationship Liability Laws are:

1. Each party shall be held responsible for its conduct.

2. Each Partner shall be responsible for the other Partners' conduct.

3. Every partner shall be responsible for the actions of the company employees.

Therefore, according to the statute of indefinite marriages-the parties will be individually mutually and severally responsible for Harry's reckless conduct. Which means each will owe for Harry's whole careless conduct.

(b) The business is an LLP

A limited liability partnership (LLP) is a relationship in which there is joint responsibility for any of both partners (depending on the jurisdiction). Within an LLP one partner is not responsible or liable for wrongdoing or incompetence by another partner. Any investors in an LLP have a form of limited liability equivalent to a corporation's theshareholders.

Many state laws governing LLPs shield spouses against criminal responsibility for actions pertaining to neglect, mistake, omission, incompetence, or wrongdoing by a copartner. The laws may typically restrict a partner's legal responsibility for the staff or other members of the company for violations, omissions, misconduct or neglect.

And if it was an LLP then the parents would not take responsibility for Harry's incompetence and Dicky would not. Too, Harry will be responsible only to the degree that he spends in the LLP.

Business structure

We arranged the company well as a joint partnership. This is because each member participates in different activities or contributes to another activity. All is accountable for his / her acts and one party is not responsible for the wrongdoing or incompetence of another party. For eg, if dicky refuses to produce the decorative parts and a customer complains he will be liable for his acts

Judicial matters

• Fiscal disagreement
• Tackling dissatified clients who might blame the company
• Acquire rights to copy and patent
• Acquiring all necessary licences

Accords required

• Partner roles and obligations
• Compensation, e.g. compensation for couples
• How to Treat Relationship Breaks and Breakup
• Exit Partners
• How to act on new partners
• Procedure of sale of the company

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