Questions
1. As a small-business owner, you are faced with rising costs, particularly employment costs, insurance, et cetera. So, you decide to hire some friends and pay them as they work, rather than go through the expense and procedure of bringing in “actual” employees. Your friends wear the business uniform, deal with vendors and customers, and tell friends and family that they work for the business. One friend / employee orders way too much from a vendor. The vendor has dealt with the person numerous times; in fact, the person has been ordering from the vendor for months.
· Since the person who ordered was not an ”employee,” but a friend you hired, are you liable to pay for the improper order?
· Discuss the implications of agency that apply in this situation, and describe at least one (1) way the company may be able to cancel or return the order in question.
· Be sure to support your legal analysis with concepts and definitions from the reading.
2. A friend has asked you to help her decide how to protect her soon-to-be-opened bakery from liability, while still maintaining a business structure that fits her needs. Compare and contrast two (2) different possible business entities that would be suitable for her and explain why. Be sure to support your response with legal reasoning.
3. Based on the video, did the company presented in the video allow a breach of security based on the laws and ideas discussed in the text? Why or why not? What was done to help remedy the situation, and was it enough based on the legal standard? What legal steps should the company take (or should the company have taken) to avoid personal identity or information from being compromised? Be sure to support your response.
http://www.cbsnews.com/news/target-ignored-systems-hacking-warnings-report-says/
