answer questions

AGENCY LAW:

LIABILITY OF AN EMPLOYER OR PRINCIPAL OR PARTNER FOR THE ACT OF AN EMPLOYEE, AGENT OR OTHER PARTNER.

DOCTINE IN LAW IS REFERRED TO AS:

RESPONDIATE SUPERIOR MEANING THAT THE

EMPLOYER IS LIABLE FOR THE NEGLIGENCE OF

THE EMPLOYEE IF IT OCCURS IN THE COURSE OF

EMPLOYMENT IT IS IMPUTED TO THE EMPLOYER

IN ADDITION TO NEGLIGENCE COULD BE BOUND IN

CONTRACT AS WELL.

WHAT FACTS WE LOOK TO ARE—DID THE EMPLOYEE

AGENT OR PARTNER HAVE

ACTUAL

IMPLIED

APPARENT AUTHORITY

REFERENCE IS THE PERSON SEEMS TO CLOTHED WITH

THE AUTHORITY—THE DUCK THEORY

McDONALDS CASE

7-11 CASE (SOUTHLAND)

WHAT ENTITY SHOULD YOU CHOOSE TO RUN A BUSINESS

SOLE PROPRIETOR

GENERAL PARTNERSHIP

CORPORATION

GENERALLY SPEAKING, SOLE PROPRIETORSHIPS AND GENERAL PARTNERSHIPS REQUIRE LITTLE OR NO FORMALITY IN RUNNING THEM, HOWEVER THEY PUT ALL INVOLVED AT RISK FOR THE DEBT OF THE ENTITY, INCLUDING ALL PERSONAL ASSESTS.

IF ONE CHOOSES TO LIMIT LIABILTY THEN AN ENTITY WITH MORE FORMALITY IS ADOPTED, LESSENING FLEXABLITY IN MANAGEMENT BUT PROVIDING PROTECTION AGAINST INDIVIDUAL LIABLITY

SOLE PROPRIETORSHIP

REQUIRES NO FORMALITY—UNLIMITED LIABILITY

GENERAL PARTNERSHIP

CAN BE BY AGREEMENT OR IN FACT

PARTERS ONLY NEED TO ANSWER TO EACH OTHER

ALL PARTNERS ARE LIABLE FOR ALL DEBTS

BOTH INCOMING AND OUTGOING HAVE DEBT

EXPOSURE.

LIMITED PARTNERSHIP

WILL HAVE A GENERAL PARTNER

MUST BE REPRESENTED BY A WRITING

MUST BE FILED IN APPROPRIATE JURISDICTION

MAY NOT PARTICIPATE IN MANAGEMENT

EXAMPLE OF FORMALITY TO PROTECT AGAINST LIABILITY