...appropriate punishment for persons who commit crimes that harm businesses. 3. Apply consumer protection law to a business situation. Introduction This week focuses on study of torts, criminal law, and consumer protection law (specifically, product liability). These are each different substantive areas of law that are relevant to business and business persons. Students will distinguish between criminal law and torts, including negligence and intentional torts. Students will also compare the differences between corporations that commit crimes and persons who commit crimes that harm businesses, and they will take a position regarding which presents the greatest threat to civil society, using current events to support their positions. In addition, students will also consider product liability arising from poorly regulated imports, and the impact of potential liability on U.S. companies. Students will also consider product recalls as a preemptory measure to mitigation liability. Students will identify and discuss the elements of negligence and a consumer protection statute. By the end of Week Two, students should understand the difference between crimes and torts, between negligence and intentional torts, and how the issue of product liability impacts businesses and consumers. Required Resources Required Text 1. Please read the following chapters in: Business Law for Managers: a. Chapter 6: Criminal Law b. Chapter 7: Intentional Torts c. Chapter...
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...In misrepresentation the person making the false statement believes it to be true. In fraud the false statement is a person who knows that it is false or he does not care to know whether it is true or not. There is no intention to deceive the other party with misrepresentation. When it comes to fraud the whole purpose is to deceive. Like if I sold a piece of land to bob, which I already sold it to frank. I am committing fraud because I did not tell bob that I already sold it to frank. I am doubling my money on two people, which I can only selling it to one knowingly. Misrepresentation is like if I send my package by mail without them weighing it telling them it weights 20lbs, which in fact it weights 40lbs. The company charges me a lower rate then the actual rate. The difference between fraud and misrepresentation in my opinion is that with fraud, the party is stating a factual wrong, knowingly; with misrepresentation is a bit sticker to explain in that say you are in retail and you are selling vaccuum cleaners for a company that has given you the speal to read to your potential buyers stating it does this and that, however you may not know for sure if it does this and that but it's your job to tell potential buyers all of the features, and let's say it doesn't do something it is supposed to, that is what I feel is misrepresentation. Altough it may be innocent on the part of the employee who was trained to say these things, but it could be potential fruad of the company...
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...Legal Forms of Business Law/531 Legal Forms of Business There are multiple legal forms of business including sole proprietorships, partnerships, limited liability partnerships, limited liability companies, S-corporations, franchises, and corporate forms. Entrepreneurs must assess concerns of liability, risks, and assets when considering these optional forms of business because each form has its own advantages and disadvantages. The following paragraphs illustrate specific scenarios where each form is justified as the preferred form of business for the situation through contextual advantages. Sole Proprietorship Brian, a struggling college student and musician, needs to find a way to pay off his student loans. He figures he could make some money in his spare time by teaching guitar lessons. A sole proprietorship would be the preferred form of business in this scenario because it is simple to form, empowers Brian with absolute control, is easy to dissolve/transfer, and avoids double taxation (Cheeseman, 2010). Under a sole proprietorship, Brian is taxed on his own personal income and is entitled to all profits, but also is burdened with financial responsibility and unlimited liability. However, this is still preferable considering he does not need the business to grow beyond himself and it is relatively unlikely that he will incur any significant business debts. Moreover, although he is limited to personal funds, he does not need to invest in much...
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...Business Law Sole proprietorship, is referred to as owning your own business entity and more or similar, sole proprietor and business owner are same. There is no legal distinction between the two; the business legal name is the same as the owners. However the business owner may obtain and conduct business under a fictitious name by filing a DBA also known as ‘doing business as’. The merits associated with sole proprietorship are: • Liability: The sole proprietorship while offering own complete autonomy, it also burdens the responsible person with unlimited accountability. The lack of distinction between the business and the owner leaves a little room for financial and or legal protection. In short, whole responsibilities for all debts and legal commitments are entirely directed to the business owner. In addition, as such creditors may seek recourse against personal assets. • Income taxes: The sole proprietor runs his own business being taxed as a whole element and form 1040 along and accompanying schedule C (profit or loss) from a particular business or owned profession.. Moreover, whatever profits the organization gains, are supposed to be personal income for the proprietor with no other division made on that and neither there is any federal income tax accountability for the owner. According to Gordon (1994-96), this is called as “pass-through taxation”. (p. 270). • Longevity: The sole proprietorship may only continue as long as the owner is alive unless specific instructions...
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...Legal Form of Business Paper Many different forms of business exist. Some of them are more common than others. Sole proprietorship, partnership, limited liability partnership, limited liability company, S corporation, franchise, and corporate form are the seven forms of business that we are going to discuss in this paper. We are going to develop scenarios in which each of these forms of business would be the preferred form and justify why the corresponding business form would be most preferable. A sole proprietorship is the simplest form of business (Cheeseman, p.530). It involves a single person wishing to start a business. . A partnership involves two or more people to carry-on a business as co-owners for profit (Cheeseman, p.533). An example of this could be that two people decided they would like to open a car washing business together. The best business model for the two of them would be to decide on a partnership. This business form would give them equal rights and equal responsibilities within the business. As long as each of them understands that they are partners and need to share the expenses and responsibilities that come with the business then a partnership would be the best model for their business. A limited liability company (LLC) is a form of business where owners have li A limited liability partnership (LLP) is a form of business that provides each of its owners with a limited personal responsibility (nolo.com, 2011)...
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...Legal Forms of Business Legal Forms of Business Entrepreneurs face a difficult decision in choosing a legal form of business. The preferred form of entity is dependent on many relative factors, such as the type of organization and business environment. Different forms of legal businesses have different tax, investment, and financial implications. The best-suited business calls for a thorough analysis of pertinent facts before making a decision – requiring some careful planning and strategy. This study provides an analysis of seven forms of legal business. Sole Proprietorship Sole proprietorships are fairly simple and inexpensive to create and operate. Legally, a sole proprietorship is inseparable from its owner, and therefore the owner is personally liable for business debts (Cheeseman, 2010). The tax implications for a sole proprietorship are simple. The business owner reports profits and losses on their personal tax returns. Sole Proprietorship is the preferred form of business in establishing or operating a small business where personal liability is not a big concern. Sole proprietors own businesses in many industries. Some of the more common sole proprietorships are landscaping services, housecleaning services, independent writing services, and tutoring services. * Landscapers tend to work alone or hire a small team of employees, providing landscaping services to homeowners and businesses. Sole proprietor may take on independent contracts and projects...
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...Legal Forms of Business Ismael Aguilar Business Law / LAW-531 September 10, 2012 Erica Woodford Legal Forms of Business When an entrepreneur is in desire to start a new business, the available options for the legal forms of business are somehow overwhelming. Each form of business provides different advantages and risks, a good understanding of the main aspects of these form of business is a step that the entrepreneur must complete to avoid future drawbacks. During the following paper, we will discuss different form of business, enlist some of their main characteristics, and provide examples of possible scenarios for new business where these different legal forms of business can be used. Sole Proprietorship The sole proprietorship is the most simplest and common form of business in the United States, where the sole proprietor, is the business (Cheeseman, 2010, p. 530). Some of the advantageous characteristics of this legal form of business are the low capital requirements to start the business, the easy to transfer or sell the business, the tax is reported in the owners income tax, and that the owner receives all the profits. In the risks side, the entire capital contributions can be loos if business fail, and the fact that the sole proprietor has unlimited liability, are two characteristics worth listing. Sole proprietorships are good legal form of business for small entrepreneurial projects that can be funded with the owner’s own capital and personal loans, and where...
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...Legal Forms of Business LAW 531 Legal Forms of Business The first step in a new business is to decide how the business will be structured and the first executive decision will be to choose what type of business organization is the best. There are a number of legal forms that a business can take but to make that choice the following should be taken into account. For example: the size and scope of business, the level of structure, the level of control, tax matters, profit or loss of the business, re-investment issues, etc. There are several legal forms of business: sole proprietorship, partnership, limited liability partnership, Limited Liability Company, corporation, S corporation. Sole proprietorship In a first scenario a handyman who wants to get into business which will have little paper work and set up cost. The entrepreneur doesn’t have a partner and will be running the business alone. For this scenario the best business form will be sole partnership. This is a business with one owner which means the owner and business are inseparable. In other words the owner is the business and the business is the owner. The majority of small businesses start out as sole proprietorships because it has some advantages. • sole proprietorship is easy to form and operate • least expensive form of ownership to organize • owners are in complete control, and may make decisions by themselves • the owner receives all income generated by the business • it is easy dissolve the business...
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...Individual Paper: Legal Forms Of Business with Supporting Scenarios Chanel Moore-Bass Law/531 Business Law March 19, 2012 Carmina Perez-Fowler, UOPX Faculty Online Week Two: Individual Paper: Legal Forms Of Business with Supporting Scenarios There are seven major forms of business: sole proprietorship (sole trader), partnership, limited liability partnership (LLP), and limited liability company (LLC), subsidiary or subchapter corporation (S), franchise, and corporate/company (C- traditional). The various forms of businesses are established and recognized by state laws. To determine the type of business form to use, it is important to know the differences, advantages, and disadvantages. Sole trader/proprietor is the clearest and simplest form of business to establish. It is just one owner, debt/tax liabilities fall on the owner, the income (profits/losses) reports on personal tax return. Examples of sole proprietorship are franchise, self employment, and independent contractor. Advantages are total autonomy of the business, no legal procedure to setup, no set hours/wages, and no shareholders. Disadvantages are if owner dies the business dissolves, full responsibility of tax/debt liabilities, difficulty obtaining long-term financing, and personal liability if sued. General partnership is more than one owner, involving verbal or oral agreement but not filing paperwork to create a specific entity, such as a corporation or LLC, either partner can bind the business to a contract...
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...Legal Forms of Business When considering the preferred legal form of business, it comes down to the level of liability, the size of the business and the number of owners or shareholders that will be involved. It is important to consider that with the increased size of a business and the increase in the number of owners, the decision-making process becomes more complex. The level of liability for the owners decreases as the owners no longer are liable for the losses and gains of the business within larger legal forms of business. Of the legal forms of business; sole proprietorship, partnership, limited liability partnership, limited liability company, S corporation, franchise, and corporate; some businesses may only qualify to be classified as one or two of the legal forms of business, making the decision easier for the owners to choose. Sole proprietorship: A sole proprietorship is a for-profit business owned by one person who may operate the business alone or employ others. The sole proprietor of the business is responsible for assets, losses, and debts. There is also no legal distinction between the sole proprietor and the business (Cheeseman, 2012). A small business, such as a coffee shop would be a prime candidate for a sole proprietorship. The owner could run the coffee shop alone or employ others to operate the business. A sole proprietorship can be more difficult to raise long-term capital for, because of unlimited liability and that the business depends...
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...Legal Forms of Business Law 531 April 5th, 2012 Legal Forms of Business Once one makes a choice to start a business, the next decision is under which legal form that business should operate. The selection is dependent on factors like the ease and cost of creation, the capital necessities, management style, government limitations, personal liability, and tax considerations (Cheeseman, 2010). It is important to make sure whichever legal form of business one chooses is in line with the best interests for his particular venture. The following will provide a basic scenario in which a business owner needs to decide which legal form of business best suits his or her needs along with an explanation of that choice. A sole proprietorship is the least complex business form. Scenario: Lucas just graduated from college with a degree in art. He has long wanted to be an interior decorator. He has student loans to pay back, but feels as though he can provide decorating services to consumers and make some money. He does not know anyone with an art background, so she will be providing these services alone. In the scenario above, it would be appropriate for Lucas to start a sole proprietorship. This form is cheap and easy. Lucas does not have a lot of money and he is eager to get started quickly. Quick start up is achievable because there are essentially no formalities. Aside from obtaining a license that is required in some local governments, no state or federal approval is necessary...
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...Law 531/ Business Law Legal Forms of Business As an entrepreneur one of the most important decision to make, when starting a business is the legal form of the business. In making this decision many factors are taken into consideration, such as financial resource for business, government rules and regulation, and personal liability. In this paper a discussion regarding the different forms of business including scenarios of these form and explanation on why this corresponding business form is preferred. Sole Proprietorship According to Cheeseman (2010), a sole proprieship is the simplest form of business organization and there is no separate legal entity. (p. 530). Under sole proprietorship the business is owned and executed by a single person. The proprietor makes all the management decisions and has authority to receive profits. Sole proprietorship business could easily be sold or transferred if the owner choose, no other approval is necessary. Scenario: A small neighborhood businesses, sometimes called, neighborhood store, are an example of sole proprietorship. Creating a sole proprietorship is easy and low cost with no government approval is required at the federal and state level. A license to do business within the city is required at the state level. This form of business is excellent for a person with limited amount of money to start a small business, Sole proprietorship is responsible for business’s contract and torts committed, The sole proprietorship has...
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...Business Law 531 Legal Forms of Business Lyneeta A. Johnson University of Phoenix October 1, 2012 Christine Benway Legal Forms of Business Starting a business is an exciting event for a business owner; it signifies the beginning of a business venture expected to be successful. Choosing an industry, identifying the target market, and developing a business strategy can be time consuming, however; the rewards outweigh the work. Deciding what legal form of business to operate can be a difficult decision for entrepreneurs because of the requirements that must be met for each legal form of business. Following is a discussion about the different forms of business. A scenario simulation for each form of business including justification for the preferred business form is also present. Sole Proprietorship According to Cheeseman (2010, p. 529) “an entrepreneur is a person who forms and operates a business.” An entrepreneur starting a business independently is a form of sole proprietorship. The owner of the business is the sole proprietor. A recent college graduate who opens a mobile dog grooming service is an excellent example of a sole proprietorship. The graduate who has experience with animals from walking dogs in the neighborhood to gain extra income would be ideal...
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...Legal Forms of Business Michelle Impellizzeri LAW/531 January 21, 2012 J. Thomas Witek, JD Legal Forms of Business To start a business, choosing the best form of operation will depend upon the type of business the owner wants to undertake. When selecting a form of business the owner should ensure that the form 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” (Cheeseman, 2010, p. 529). The major forms of business organizations are, sole proprietorship, partnership, limited liability company, limited liability partnership, corporation, S corporation, and franchise. This paper will define these forms and provide individual scenarios of each and why they were chosen. Sole Proprietorship “A sole proprietorship is the simplest form of business organization. The owner of the business, the sole proprietor, is the business” (Cheeseman, 2010, pg. 530). An example of a business that would benefit from sole proprietorship would be someone who creates floral designs and sells them for a profit. In this scenario, sole proprietorship would be the optimum business form as it is the easiest business to establish and does not cost a lot. As the sole proprietor, the owner has the rights to make all business decisions, to include staffing, merchandise pricing, and hours...
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...The current business environment brings a lot of challenges and opportunities for new businesses. An entrepreneur that starts a business must decide the legal form under which the new company will operate. The major forms of business organizations are: sole proprietorship, partnership, general partnership, limited partnership, limited liability partnerships, limited liability company, and corporation or under other available legal business forms (Cheeseman, 2010). The choice could become a critical factor of the success of the enterprise, since it will affect the cost structure, the capital requirements, the interaction with the government, legal risk, tax considerations and the overhead amount that will be required to operate the business properly. Sole Proprietorship This legal entity is the simplest business form. The sole proprietorship is not a legal entity. It refers to an individual that has full ownership of the profits and debts of the business. When a small entrepreneur decides to name his business in a particular way (e.g. Carlos' garage) is only a commercial name but is not a separate legal entity. Because its simplicity and its low cost it is a popular legal form, the only requirements are to register the name of the owner and obtain local licenses. A key disadvantage is that the owner is personally liable for all the business debt. This means that in the event of a legal dispute, the owner's assets will be in risk since any potential legal dispute can be addressed...
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