Applying Legal Knowledge to Business Organization, Agency, Liability, and Contracts

Applying Legal Knowledge to Business Organization, Agency, Liability, and Contracts

  1. Otis should choose to open a limited liability company. Opening a new business comes with many challenges that lead to it making losses; at times like this, the business owner requires protection from personal responsibility from the business debts and liability, which is achieved by forming an LLC. Starting a business is an expensive venture that may require a high initial capital investment. LLC will allow Otis to partner with his friends, who will help raise the required capital. The number of shareholders is also not restricted, and members are free to structure the company’s management.
  2. Otis is responsible under the vicarious law. The purpose of the law is to stop employers from hiring carelessly and hold them accountable for all costs involved in conducting the business. Business costs include expenses that come from recklessness, misconduct, and carelessness of employees. However, it holds mainly if the incident happened within the premises or when the employee was discharging duties for the employer. Otis will have to bear the responsibility for Doug Drivers’ injuries because he was injured when he was in his shop because of carelessness from Kelly.
  3. Otis should not use artificial sweeteners because of the financial and legal implications of taking that decision. When opening any business, the owner has a legal obligation to observe the duty of care. Duty of care requires an owner of a company to adhere to the set standards of care while doing business that can harm others. If Otis uses the artificial sweetener, he will breach his legal duty to take care of his customers and be sued for deliberately causing cancer; this will have huge financial implications on his business as he will have to pay for medical expenses and other expenses damages.

References

Allen, W. T., Kraakman, R., & Khanna, V. S. (2021). Commentaries and cases on the law of business organization. Wolters Kluwer.

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Applying Legal Knowledge to Business Organization, Agency, Liability, and Contracts . (2022, June 20). Essay Writing . Retrieved July 03, 2022, from https://www.essay-writing.com/samples/applying-legal-knowledge/
“ Applying Legal Knowledge to Business Organization, Agency, Liability, and Contracts .” Essay Writing , 20 Jun. 2022, www.essay-writing.com/samples/applying-legal-knowledge/
Applying Legal Knowledge to Business Organization, Agency, Liability, and Contracts . [online]. Available at: <https://www.essay-writing.com/samples/applying-legal-knowledge/> [Accessed 03 Jul. 2022].
Applying Legal Knowledge to Business Organization, Agency, Liability, and Contracts [Internet]. Essay Writing . 2022 Jun 20 [cited 2022 Jul 03]. Available from: https://www.essay-writing.com/samples/applying-legal-knowledge/
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