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Week 9 Assignment – Applying Legal Knowledge to Business Organization, Agency, Liability, and Contracts.

Week 9 Assignment – Applying Legal Knowledge to Business Organization, Agency, Liability, and Contracts.

Introduction

In this assignment, you will make determinations for each of the scenarios provided below. Read the scenarios, answer the three questions that follow in a 2–4 page paper, and include at least two academic sources to support your decisions and rationale.

 

Scenarios

1. Otis Owner loves to bake cookies. Everyone loves his cookies, and his friends recommend that Otis open his own shop. Otis likes the idea, and after saving some money, decides that he will open his own business. Otis is familiar with sole proprietorships, limited liability companies, and corporations, but he is unsure which option would be best for his business.

 

Consider the scenario and answer the following question:

 

Determine if Otis should select a sole proprietorship, limited liability company, or corporation. Explain why the form of business organization selected is the best for Otis.

2. Otis hires Kelly Kleaner to help in his shop. Kelly enjoys the job, is always on time, and is happy with the hourly pay. Otis, however, is concerned about his liability if Kelly injures someone while working at his business. After Kelly mopped the floor one day, Doug Driver shows up to deliver a package and slips on the wet floor. Doug breaks his leg. 

 

Consider the scenario and answer the following questions:

 

Determine if Otis is responsible for the injuries suffered by Doug Driver. Explain the elements of an agency relationship as they relate to the scenarios in your response.

3. Otis is looking to expand his business. He has the opportunity to make sugar-free cookies using a new artificial sweetener. The sweetener is very inexpensive and would increase Otis’ profit margin. However, there are some health concerns about the artificial sweetener and studies show that it may cause cancer. Otis would like to increase his profits, but he is concerned about the health risks of using the artificial sweetener.

 

Consider the scenario and answer the following question:

 

Should Otis use the artificial sweetener? Discuss both the financial and ethical implications of Otis’ decision.

Instructions

In a 2–4 page paper, answer the three questions relating to the scenarios. Be sure to cite your sources and include a reference page with at least two (2) academic sources.

 

Academic sources can also be called scholarly sources. The sources may be books,  journal articles, and published expert reports. Academic sources have been peer-reviewed, which means they have been reviewed by experts on those topics.

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