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Legal Liability

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Case Study 1

Erica contracted to purchase a giant 72" television from Hometown Electronics, a large retailer for appliances and electronics. Hometown agreed to deliver the television to Erica's home. On the way to Erica's house, the delivery truck, subcontracted by Hometown, was hit by another truck and all of the contents were destroyed. Who bears the risk of loss? What is the status of the contract? What if there is no visible damage to the television when it is delivered to Erica? Please be sure to answer thoroughly and completely, citing scholarly sources to support your response.

Case Study 2

Wendy was addicted to her morning cup of coffee. She had one cup before leaving the house and usually picked up another cup from the coffee shop on her way to the office. This morning, the line at the coffee shop was too long; therefore, Wendy decided to get a cup of coffee from the vending machine at work. The coffee was so hot that Wendy dropped it all over herself and was badly burned. Wendy filed suit against the vending company, the manufacturer of the vending machine, the owner of the building and the distributor of the coffee. What rights does Wendy have? Explain Wendy's case against each party and possible defenses by each defendant.

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Solution Preview

Case Study One: In this situation there is a dual bearing of the risk of all responsibility of loss in this case. This is largely due to the fact that the owner of the truck that hit the truck that was subcontracted by Hometown Electronics is liable to Hometown Electronics for the loss that was incurred due to the accident. This is assuming that the truck that was subcontracted by Hometown Electronics was driven by an individual that was obeying all traffic laws, and was not at fault in causing the accident by engaging in activities such as running a red light and thereby causing the other truck to hit his or her truck, for example. Due to the fact that there is no indication that the Hometown Electronics truck's driver was at fault in causing the collision, the owner of the truck that hit the truck that was subcontracted by Hometown Electronics is liable to hometown electronics for the property loss that was incurred, and Hometown Electronics is liable to Erica for the 72 inch television that she purchased from Hometown Electronics. This is due to the fact that upon the purchase of the television there was contracts will agreement between Erica and Hometown Electronics for the purchase of the television but Erica, and the delivery of the ...

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Entrepreneurial Legal Liability

Read the entrepreneur's dilemma and the questions that follow. Identify the legal issue(s) and apply legal concepts and possible arguments for each question. Prepare a solution for each question using laws, cases, examples and/or other relevant materials. Identify potential ethical issues and propose a solution for each issue. Support your answers with information from the textbook and at least two outside scholarly sources. Prepare ideas for a paper that identifies the legal issues and potential solutions and answers all questions presented, supported by relevant legal authority. Properly cite all sources using APA format.

The Dilemma

In the five years since she started Critter Sitters in Orlando Florida, Lauren incorporated the business, rented a small building, purchased two mobile grooming vans and hired 16 employees. Critter Sitters services include walking, feeding, grooming, training and providing other services for pets. Some services are provided at the clients' homes and others are provided in the leased office space.

June, a Critter Sitters customer, was waiting for her Great Dane, Pooky Bear, to get a bath. While June was waiting in the lobby, Jason, a Critter Sitter employee, lost control of a dog he was bringing to a customer. The dog ran into June, knocking her to the ground. When June complained, Jason kicked her. About that time, the groomer brought out Pooky Bear and the dog bit Jason in the thigh, heavily damaging muscle tissue.
Is Critter Sitters liable for June's injuries? Be sure to establish a proper legal foundation for your response.
Which party is liable to Jason for the dog bite - June or Critter Sitters?
Explain what type of insurance, if any, Lauren should have for Critter Sitters. Justify your response.
Patrick and Alicia Allen worked for Critter Sitters as mobile groomers. The Allens were allowed to keep the mobile van at their home, because they routinely drove to work sites directly from their home. Alicia Allen was involved in a collision with Terrell Baker while driving the van home from work one day. At the time of the accident, Alicia had taken a detour in order to stop at the grocery store—she had intended to purchase a few items and then go home. Baker's car was totalled and he missed approximately two weeks of work recovering from his injuries. Baker sued the Allens and Critter Sitters. Alicia suffered a broken back and may be paralyzed.
Are Critter Sitters or the Allens liable for Baker's injuries? Why or why not? Discuss fully, citing to case law to support your position.
Assume Critter Sitters has insurance on the vehicles and the Allens maintain insurance on their personal vehicles. Which insurance company will be liable for payment of Alicia's claims?
Lauren's employees came from diverse backgrounds and Lauren considers herself an equal opportunity employer. Because of her religious beliefs, Lauren refused to hire homosexuals. Terry, a groomer with 10 years experience applied for a job at Critter Sitters. Lauren hired Sue, who only had five years experience. Terry felt that she was discriminated against because she was a lesbian.
Determine whether Terry will succeed if she files a discrimination lawsuit against Critter Sitters? Discuss state and federal laws that support your answer.
Ellie took Bruno, her Chihuahua, to Critter Sitters for a day of pampering. Ellie provides her phone number and signs the authorization form without reading it. While the groomers were bathing Bruno, he collapsed and died.
Using principles of bailment, determine whether Ellie should recover for Bruno's death.
On January 1, 2010, Lauren entered into a 5 year lease agreement with Warren. In 2011, Lauren discovered she needed more space and found a great deal on an office building with twice the amount of space. Instead of leasing, Lauren purchased the office building. Lauren knew that Warren would not let her out the lease, so she assigned her rights under the lease to Barry. Barry moved in and made payments until November 2012. Without Warren's or Lauren's knowledge, Barry moved out at the end of December owing two months rent.
Which party is liable for the remaining rental payments?
If the party liable for the debt does not pay and Warren obtains a judgment ordering payment from that party, what are Warren's options for seeking payment?
When Lauren purchased the office building, she obtained a mortgage from First Trust Bank.
Explain Lauren's rights in the property, including responsibilities for taxes, payments and future sale of the property.
What are Lauren's rights if she defaults on the mortgage and the bank forecloses on the property?
Identify and explain any ethical concerns that Lauren may face on any of the topics covered in 1-6.

Conclude your paper by providing suggestions for Lauren to help prevent future occurrences of these types of legal and ethical problems.
Support your answers with appropriate research, reasoning, cases, laws, and other relevant examples.

Submit the paper in APA format and properly cite sources on a separate page using APA.

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