...Business Entities, Laws, and Regulations Trudy E. Hartis BUS/415 November 20, 2011 Mark Rorem Business Entities, Laws, and Regulations A business assumes limitations and liabilities when building the structure of the organization. There are several types of business entities, hiring an accountant or attorney can help you decide what type of business structure best fits the need of the organization or business that you want to establish. Sole proprietorship, is a form of business with the least amount of legal formalities and the owner assumes sole responsibility for finances and operations of the business. “C” Corporation, are separate entity from its owners. Providing shareholders protection from liability and debts. “S” Corporation, similar to a corporation and is exempt from federal income tax. General Partnership, require an agreement between two or more individuals or entities to own and operate a business. Limited Partnership, form of business that offers some of the partner’s limited liability. Limited partners contribute capital and have limited liability but assume not active role in the daily business affairs. Limited Liability Partnership, LLP’s is organized to protect individual partners form personal liability for the negligent acts of others partners or employees not under their direct control. Limited Liability Company, LLC is a combination of the corporate and partnership forms of business (Types of Business Entities, 2004)...
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...have Miriam, who is a wealthy investor wanting to invest in their dream. Miriam will provide the capital with minimal participation in the business, but is wanting to profit from the business. Business Entity, Control, Taxation, Liability Since there are three individuals wanting to gain and contribute to this sports bar and restaurant the best suitable entity would be as a general partnership. A general partnership is recognized as being one in the same as its owners. Lou and Jose will be constituted as the general partnership, whereas Miriam would be known as partnership by estoppel. An estoppel is classified as one who is not permitted to deny the partnership. Control in a general partnership is based on the agreement by all partners. A general partnership only has one level of taxation, and is considered a tax-reporting entity and not a tax-paying entity. The profits that will be acquired from the sports bar and restaurant, each partner will be granted their share. Since each individual gets their amount as agreed upon, it goes into an individual account meaning that each need to report their earnings on tax forms individually. The liability that exists in a general partnership include unlimited personal liability. Each partner in a general partnership is liable for maintaining the partnership’s obligations. In the event of a law suit, joint partnership is sued as a group, and several liability individual partners are sued. There are three main rules that apply to...
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...CHAPTER 1 – KNOWLEDGE OF LAW AS A BUSINESS ASSET • Business law – a set of established rules governing commercial relationships, including enforcement of rights o Defines general rules of commerce o Protects business ideas and tangible forms of property o Provides mechanisms allowing selection of desired participation and exposure to risk in business ventures o Ensure losses are borne by those responsible o Facilitates planning by ensuring compliance with commitments • Law – set of rules and principles guiding conduct in society; provides protection o Rules have penalties to encourage compliance o Those who break the law are accountable for misconduct o Laws facilitate personal and professional interactions • Breach of contract – failure to comply with contractual promise • Age of majority – age at which a person becomes an adult for legal purposes • Contract law – rules that make agreements binding; facilitate planning and enforcement of expectations between two parties o Functions to prevent disputes and facilitate relationships o Important contribution: creating certainty in business relationships • Litigation – process when one person sues another • Disputes should try and be resolved before being taken to court o Try and negotiation resolution o Mediation – parties try reaching resolution with help of a neutral party o Arbitration – Neutral party makes a (binding) decision to resolve dispute o Liability – legal responsibility for event/loss that has...
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...Business and Society Law Kaleb Gee LAW/421 March 20, 2012 Dr. Lisa Browning Business Law Today Introduction Law is a broad and vague term as relating to business. The judiciary branch gives people and businesses a definable structure to operate with-in. Federal and state governments also provide a premise to settle civil and criminal disputes between individuals or individuals versus businesses. This paper will define the functions and role of law in business and society. It will also discuss the functions and role of law in my corporate retail industry. Function and role of law in business Businesses’ main goal is to make money by providing a certain service or product. Without some sort of structure, corporate fraud and wrong-doing would be widespread. Law and its’ governance provide the necessary legal guidelines that keep businesses in check. Laws also “supply ethical business standards and expectations” (Bushman, 2007). Law is ever-adapting to continue regulating businesses as also adjust to the economy. Business need to know and understand the laws that apply to them to “recognize opportunities for proactive business planning, limiting liability, gaining a competitive edge, and adding value to the business” (Melvin, 2011). Function and role of law in society “Without laws to govern the actions of people and businesses, society would not be able to function effectively” (Bushman, 2007). Individuals must follow the law or face criminal and/or civil consequences...
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...mainstream, the premise itself has created a distinct medium for business opportunities. The Social Media Marketing Manager, is at the forefront of utilizing social media outlets for consumer transactions. While Social Media is far from a fledgling arena, it is still a relatively new aspect to consider for instances of commerce to take place. Social Media outlets can effectively be viewed as frontier like, especially when considering the legal aspects of any business being conducted within the realm of cyberspace. Therefore, a Social Media Marketing Manager must be legally astute when attempting to create sales opportunities for any respective business. One conducting business via social media can expect many of the same themes that are engrained within traditional business mediums to have an impact on internet based business transactions such as dispute resolution and government regulation. Additionally, there may be unforeseen implications that effect any relationship that exists between the social media provider and the product/service business which uses the respective media outlet. The four characteristics of a legally astute manager, include an acceptance of how important the law is to the success of the organization, a proactive attitude toward legal issues and regulations, the ability to use informed judgment when faced with decisions involving legal implications, and having the knowledge of specific laws, regulations, tools and resources. A social media marketing manager...
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...Vranich because they entered into an oral modification of their written contract. Under Montana law, a written contract can be altered in writing or by an executed oral agreement therefore making their alteration legally binding. Dr. Vranich acted extremely unethical in raising the defense that the contract was not in writing because he was aware of the oral alteration he entered with Dr. Winkel and the only cause for this case was due to a disagreement among the two parties. Cheeseman, Henry (). Business Law: Legal Environment, Online Commerce, Business Ethics, and International Issues [7] (VitalSource Bookshelf), Retrieved from http://online.vitalsource.com/books/9781256088080/id/ch09lev1sec11 10.7 In this case, Peter Andrus would win because he did not accept the terms of the policy two months prior to the expiration. Although Durick sued Andrus to recover the premiums on the $48,000 policy, these details were never agreed upon and are therefore not legally binding. An agreement is the manifestation by two or more people through a contract that requires an offer and an acceptance. The acceptance in this case existed in the beginning of the contract but not two months prior to its expiration when Durick notified Andrus of the new terms. Therefore, Durick will not recover the premiums of the policy. Cheeseman, Henry (). Business Law: Legal Environment, Online Commerce, Business Ethics, and International Issues [7] (VitalSource Bookshelf), Retrieved from http://online.vitalsource...
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...Aspects of Contract and Negligence for Business | Introduction The main purpose of the report is to recognize the aspects of Contract and Negligence for a Business. In these days, the business atmosphere is filled with agreements between industries and individuals. Whereas oral agreements may be used, maximum businesses use proper written contracts while engaging in actions. Written contracts deliver businesses and individuals with a lawful document affirming the prospects of both the parties and in what way negative situations might be resolved. Contracts are lawfully enforceable in court of regulation. Contracts often signify a instrument that companies practice to defense their capitals. Negligence has speedily developed to the basis of our system for reimbursing people for unintentional damage and grievances. It allows the benches toward compensations in tort in particular conditions where it is impossible to continue a contract. It has furthermore been used innovatively to compensate individuals for financial fatalities in business settings where no extra remedy was accessible. Executive summary The aim of this learning is to study the basic lawful values for which we can use in the applied aspects of business. Also from the case studies which is given is very helpful for practical day to day issues. This is focused on non-lower therefore we should give a clear picture of the concepts such as contracts, negligence torts, breach of condition etc. This is also...
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...Business Law Name Institution Business Law When starting a new business, there is a range of legal issues that the two graduates should put into consideration before making the business operational. Everything from the business structure to its operation to its name has legal implications. Before starting the business, the two graduates are required to sample legal concerns that they want to address with their attorney before they start the business (Miller, Cross, & Jentz, 2013). They should make sure that the business name they wish to use (“Take No Prisoners” in this case) is not already being used by some other business. They can accomplish this by conducting a name search using the appropriate state agency, which is often the office of Secretary of State. In case the chosen name is not used already by another organization, they can go ahead and reserve it with the office of the Secretary of State for a period of about 120 days, as they prepare their articles of organization or a partnership agreement. They will also need to decide on the kind of business structure that suits their business such as partnership or limited partnership. In deciding this, they will be required to take into consideration liability issues that are associated with their business (Miller, Cross, & Jentz, 2013). The graduates will also be required to acquire a business license and a tax registration before beginning their operation. When selecting the location...
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...Efrain Santiago Course GM597: Business Law. Assignment 9.4: Business Ethics Loren Vranich, a doctor practicing under the corporate name Family Health Care, P.C., entered into a written employment contract to hire Dennis Winkel. The written contract provided for an annual salary, insurance benefits, and other employment benefits. Nine months later Vrankich and Winkel entered into an oral modification of their written contract whereby Winkel was to receive a higher salary and a profit-share bonus. Winkel received the increased Salary. But does Winkel receive the profit-sharing bonus? The answer is no, under contract law, if a contract is required to be in writing, but it is not, the contract is unenforceable. Under Montana Law, a written contract can be altered only in writing or by an executed oral agreement. However, the parties may voluntarily perform a contract that is unenforceable; therefore, Winkel may request that Vranich honor their oral agreement of the profit-sharing, but Winkel have no right to enforce this agreement in a court of law. Did Dr. Vranich act ethically in raising the defense that the contract was not in writing? No in my opinion the act by Dr.Vranich in raising the defense that the contract was not in writing is unethical. Clearly there was an oral contract between Dr. Vranich and Winkel since one portion was executed: Winkel received the increased in salary verbally promised by Dr. Vranich, and no denial by Dr. Vranich of the oral agreement was...
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...PACE UNIVERSITY Law 101 - Business Law I CRN 70058 Fall 2015 Professor Frank G. Colella Wednesdays 9:00 AM – 12:00 PM Syllabus Text: Anderson’s Business Law and the Legal Environment Comprehensive Volume/22nd Edition/Twomey & Jennings Course Objectives 1. 2. 3. 4. 5. 6. To acquaint students with the basic laws governing contracts, torts, crimes, consumer protection, and administrative agencies. The nature and sources of law, the court system, alternate dispute resolution, and the U.S. Constitution will also be studied. To help students gain a sense of the broader legal environment of business. To help students gain a historical perspective on the development of law. To encourage students to think critically about the law and consider the ethical implications of business transactions. To help students view the law in the context of local, national, and global forums. To develop written and oral presentation skills in the study of law. Homework consists of written answers to the questions at the end of each assigned chapter. Unless otherwise stated, homework assignments are due on Tuesday of the week the chapter material has been assigned. Students must retain a copy of the submitted homework. Homework constitutes a minimum of 5% of the overall grade. Students will lose credit for the failure to timely submit homework (or the submission of incomplete or improperly prepared assignments). Each missed assignment will result in a deduction of 2%...
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...written notice of such default to the defaulting Partner. The defaulting Partner shall have fourteen (14) calendar days after such notice is sent to cure such default. If the defaulting Partner fails to timely cure such default, the Partner that is then entitled to purchase the defaulting Joint Venturer’s share in the Partner may invoke, in addition to any other remedy at law, the sale of the defaulting Joint Venturer’s interest in the Business Cooperation as stated in paragraph 9.02. 10.02 Sale Notice. Sale Notice. Notwithstanding the written offer requirement of the selling Partner in paragraph 9.02, if the defaulting Partner fails to make the required written offer to sell his interest within five (5) days after the expiration of the cure period, any non-defaulting Joint Venturer’s that is entitled to buyout the defaulting Partner may send written notice of intent to purchase the defaulting Joint Venturer’s interest in the Business Cooperation and the defaulting Partner shall complete the sale within thirty (30) days after such notice is sent. ARTICLE XI REPRESENTATIONS AND WARRANTIES 11.01 Each Business Cooperation hereby represents and warrants to each other the following matters: Each Partner has the legal power, right, capacity and authority to enter into this Agreement. However ABC COMPANY IN CHINA does have the right decisive vote in all matters in the project gathering and planning. All requisite action (corporate, trust, partnership or otherwise) has been taken...
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...ORGANIZATIONAL FORMS Yvette Crespo 310.1.2 The following is an explanation of six types of business models. I will explain the advantages and disadvantages, liability, incomes taxes, longevity, control, profit retention. Location and or convenience and burdens. In conclusion, the reader should have a clear understanding and overview of the six types of business forms. SOLE PROPRIETORSHIP The overall benefits of a sole proprietorship are the flexibility and inexpensive way you can organize and control the company. The owner can create their own policy and procedures as long as they are with the parameters of the law. They receive all income generated by their business and can reinvest as they see fit. Disadvantages There are a few disadvantages sole owners can experience such as raising funds, use their own personal savings and acquiring debt through business loans. Obtaining and retaining high performing talent can be challenging due to sustainability of employment and medical benefits. Income Taxes When filing income taxes as a sole proprietor you must use a Schedule C form along with Schedule SE and Form 1040. Taxes are paid on all profits of the business. Any money left in the account at the end of the year has to be reported and taxes must be paid the balance. Recording keeping is crucial as a sole proprietor. You can deduct expenses such as operating costs, travel, equipment and start-up costs. (Nolo, 2011). Self-employment taxes must be paid into...
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...sale is the backbone of international trade in all countries, irrespective of their legal tradition or level of economic development. The CISG is therefore considered one of the core international trade law conventions whose universal adoption is desirable. The CISG is the result of a legislative effort that started at the beginning of the twentieth century. The resulting text provides a careful balance between the interests of the buyer and of the seller. It has also inspired contract law reform at the national level. The adoption of the CISG provides modern, uniform legislation for the international sale of goods that would apply whenever contracts for the sale of goods are concluded between parties with a place of business in Contracting States. In these cases, the CISG would apply directly, avoiding recourse to rules of private international law to determine the law applicable to the contract, adding significantly to the certainty and predictability of international sales contracts. Moreover, the CISG may apply to a contract for international sale of goods when the rules of private international law point at the law of a Contracting State as the applicable one, or by virtue of the choice of the contractual parties, regardless of whether their places of business are located in a Contracting State. In this latter case, the CISG provides a neutral body of rules that can be easily accepted in light of its transnational nature and of the wide...
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...Business Entities, Laws, and Regulations Paper Name BUS/415 Instructor Name July 5, 2010 Business Entities, Laws, and Regulations Paper There are two hypothetical businesses or scenarios which are selected for the following paper. This paper will comprise of contemplations regarding various issues which these businesses will have to face. These may include issues related to legal, liability, control, taxation, and risk and regulatory. Furthermore a hypothetical manager scenario will be there according to which a manager will hire from amongst several candidates with different qualifications and experiences. An advertisement for a jackhammer operator will be placed in accordance to which the applicant will be selected from numerous applicants and also the regulatory and legal issues will be considered while doing this selection. Professional Practice Scenario As per this scenario, a big loan or credit is required by Akiva and Tara who are interested in opening a birthing clinic. For this purpose they need large financing which is possible through the loan. A limited partnership will be created when two medical professionals Akiva and Tara will enter a partnership. This will be an LLP or Limited Liability Partnership. According to Cheeseman (2010, p.274) there is advantage for the partners to enter an LLP as the liability on each partner is up to the capital contribution or investments in the partnership. When articles of partnership is filed with the secretary of...
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...Role and Function of Law Ron Metz January 13, 2013 LAW/421 Tom Poulton Role and Function of Law The definition of law is “a body of rules of action or conduct prescribed by controlling authority, and having a legal binding force (Melvin, 2011, pg. 4).” Laws create duties, obligations and rights that reflect the accepted views of any given society. The most obvious purpose of laws is to provide order that defines crimes and levies punishment for violation of the crimes. It also helps to resolves disputes by providing a basis for deciding the legal interest and rights to every party involved in the dispute. Modern law in the United States regulate businesses and individuals in a combination of constitutional law, statutory law, common law and administrative law on a federal, state, or local level. (Melvin, 2011) The function and role of law in business can help with the planning process and gaining access to opportunities. Laws help the business gain access to opportunities that may help avoid law suits and gain the competitive advantage through advertisement and strategies. Laws are also put in place to help protect business secrets. (Melvin, 2011) The function and role of law for individuals is to protect the property of individuals and to keep order among individuals. These laws are in the form of civil laws, criminal laws, substantive laws and procedural laws. Civil law is law to protect individuals and businesses against any loss in the result from another’s conduct...
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