According the legal dictionary an incorporated company is formed with the approval from the state in which the corporation is being formed. This corporation is an artificial person, that is someone who does not exist. The organization can sue and be sued, that is unless it is non-profit. A corporation can sell shares of stock if needed. An corporations liability is limited to its assects, so the owner or the shareholders are protected from personal claims unless they commit fraud.
Additional factors that are relevant to this determination include "entrepreneurial aspects of the individual's business; risk of loss and opportunity for profit; and the individual's proprietary interest in his business." See Merchants, 580 F.2d at 973; SIDA, 512 F.2d at 359; see also Corporate Express Delivery Sys. v. NLRB,292 F.3d 777, 780-81 (D.C.Cir. 2002). We must assess and weigh all of the incidents of the relationship with the understanding that no one factor is decisive, see United Ins, 390 U.S. at 258, 88 S.Ct.
Running head: Business Law Rachel Lavender Western Governors University 2/21/11 PART A Sole Proprietorship A sole proprietorship is how most business entities begin. This type of business is owned and operated by one person. The main advantage of this type of business is that the owner does not need to get the approval of a partner or board in order to make decisions. A significant disadvantage is that, in a sole proprietorship, there is no separation from the business and personal assets, therefore, there is unlimited personal liability to the owner’s personal assets. · Liability-There is no difference between personal and business assets.
Business Legal Forms Part I Business Type | Personal Liability Exposure | Tinker’s Home Security Service (sole proprietorship) | As a sole proprietor, I would be fully liable in the suit. The plaintiff could come after the business and my personal assets. | Tinker & Tailor’s Home Security Service (general partnership) | In a general partnership all partners would be liable, even if they did not personally cause the issue. Like a proprietorship, this includes personal assets, also. | Tinker & Tailor’s Home Security Service (LP) | In a limited partnership only the general partner is fully liable.
General partners, organized as a Partnership, are fully responsible for liabilities while Limited partners are not. Sole Proprietors are 100% responsible for the liabilities of the organization. The Rights, Responsibilities, and Legal Arrangement among Owners are also a significant part of the decision making process when deciding the type of organization to form. “State corporation laws specify the rights and responsibilities of corporations and their shareholders. Consequently, shareholders have no flexibility to alter their legal treatment with respect to one another, with respect to the corporation, and with respect to outsiders” (15-3).
Cruz also complied with the requirements to send a summons and complaint to a corporation by sending it to the president of Fagor, Patricio Barriga. The return receipt signed by Tina Hayes, who is authorized to accept mail on Barriga’s behalf, also suffices the requirements for satisfactory proof of service. The appellate court found no requirement that the return receipt be signed by the defendant. Fagor did not present a legitimate excuse for not answering the original action, nor did Fagor diligently try to set aside the default once it learned of it. Fagor failed to fulfill two of the three conditions to apply for equitable relief on the basis of extrinsic mistake.
The case Kia Motors Corp. v. Ruiz is a very interesting one, in which several legal concepts were applied and debated during litigation. As mentioned above, KIA Motors Corp. argued that they were not liable on a design-defect theory because they complied with the applicable federal safety standards. Also, they argued that being liable on a design-defect theory will create a precedent in which federal safety standards will be omitted in the
Verbal acts - verbal acts not offered for their truth. Non hearsay. An offer made or to defame someone. Such a statement is not excluded by the hearsay rule, because it has a legal significance completely apart from its truth or falsity. The testimony of Pam Duffy, wife of Gadget Co. CEO Charlie Duffy.
1. From a tax perspective, and disregarding other issues such as limited liability, does it always make sense to operate businesses in a separate business entity? When might it be better to be a sole proprietor? The issue here is if it always makes sense to operate businesses in a separate business entity and when might it be better to be a sole proprietor. According to Smith, Harmelink & Hasselback.
With both systems working together, no room is left for error on the side of the law. Monopolies are kept under control (not allowed), and discrimination is not tolerated in any form. Many lawsuits have been brought forth due to both parts of this essay, and all have proven time and time again that, no matter the justification for the actions, the law or the United States Constitution will not tolerate negative effects on commerce. References Cheeseman, Henry R. (2007). The Legal Environment of Business and Online Commerce: Business Ethics, E-Commerce, Regulatory, and International Issues.