Free Essay

Products Liability Research Paper

In:

Submitted By Soldiergirl68
Words 2128
Pages 9
Products Liability Research Paper
Select a company that has been the subject of a product liability lawsuit in the last ten (10) years.
The Plaintiffs vs. Bayer Pharmaceuticals, the German manufacturer of the birth controls Yaz and Yasmin has landed themselves in hot water and is headed to the courts. Bayer Pharmaceuticals net worth is over a billion dollars and is still climbing. The use of the birth controls Yaz and Yasmin has sparked a lot of attention with claims of a number of dangerous side effects. This case has become very popular, with over 11,300 claims pending and the possibility of more to come, Bayer is expected to pay out about $110 Million in the Yaz case in an attempt to avoid being tried before a jury but that is only the beginning of a long list of active claims. The use of these birth controls are causing an increased number of blood clots in women as well as complications of blood disorders, problems of the heart, strokes, and in some cases even death. www.drugwatch.com the problem appears to be stemming from drospirenone (a progestin) that is found in the birth control pills. In the case of Shannon Landry of Louisiana she filed a complaint with the U.S. district Court for the Southern District of Illinois. In 2000 Landry began taking Yaz and continued until 2010, and shortly thereafter she began having severe side effects. She was later diagnosed with a gallbladder disease called biliary dyskinesia that resulted in surgery to have her gallbladder removed. Although her case is a little different from the usual side effects like blood clots it is one of the side effects that can occur from using Yaz, her side effects are the results of taking the same birth control which can also raise the levels of potassium and block the flow of the bile’s. The complaints are still coming in as more and more women are experiencing these side effects from increased blood clots that can cause women to lose twice as much blood through clotting but not all of the side effects are the same
The plaintiffs seem to feel that Bayer has downplayed the dangers and risks of the use of
Yaz and Yasmin and that the marketing approach used was over exaggerated. In some cases the plaintiffs have accused Bayer of a lack of proper medical research and failure to indicate the most dangerous risks associated with the use of these birth controls. It also appears that the manufacturer may have supplied medications with possible defects, flaws in the design, and warnings that were inadequate. The downfall to using Yaz and Yasmin is due to a number of deaths from 2004 to 2008 and the birth control needs to be taken off of the market. In 2012 Bayer settled the first of many cases that were pending that cost them $110 million to settle about 500 cases which netted the plaintiffs almost $220,000 each, but so far the total payout has been around $142 million. With the number of claims rising, Bayer is expecting to pay somewhere in the neighborhood of $2.6 billion by the time all of the cases have been settled.
As with many other cases no company wants to bear the blame when things go wrong and Bayer is no different. There is no amount of money that can cover the loss of a loved one from the use of a defective product, nor can it heal the internal wounds and scars that are left behind. It is so easy for a company to create a product and at the same time set money aside for a potential problem that may occur because they knowingly manufactured products under deceitful practices. The use of birth control is an old method for preventing pregnancy but companies are now trying to create multi-meds in the same manner that they do multi-vitamins. The manufacturers are finding ways to cut corners and minimize their production cost while they profit from the sales. In this case the purpose of the lawsuits are to instill into these manufacturers that they have to not only pay but also admit to liability and negligence. When a company has an opportunity to mass-produce a product the consumers are usually the ones who suffers.
Whenever a consumer knows about the risks and dangers of a product it gives them an opportunity to opt out and try something else or even choose to use a more practical cure or prevention. In the case with Bayer there is no indication of whether or not the plaintiffs are being compensated for punitive damages or if their cases are based on tort. The cases that were settled appears to be due to negligence, however there is no indication of how many of the families were paid in the death cases. The guidelines and safety standards needs to be reevaluated and strictly enforced and when cases like these comes up the products should be taken off of the markets for immediately for further evaluation.
Although the controversy with Bayer continues there has not been any removal of the birth controls Yaz and Yasmin from the market. As of April 2012 the information has been updated and the risk for blood clots has been added to the package inserts. But Bayer is not the only manufacturer that should be worried. There are also generic versions of Yaz and Yasmin being produced by companies like Teva Pharmaceuticals and Barr Laboratories, Watson Pharmaceuticals, and Sandoz, Inc., these companies should be worried about the possibility of future lawsuits and should consider the fact that generics usually contain similar ingredients to Yaz and Yasmin. If these birth control pills are causing side effects that could possibly lead to death, consumers have to wonder if this is an attempt to utilize the birth controls as a form of permanent sterilization in order to decrease the population. www.lawsuits.lawinfo.com in November 2009 33,000 boxes of Yaz were recalled, but they were not taken off of the market and no explanations were given as to why the recall had occurred. With the increased danger of side effects, there have been changes to Yaz advertising and prescriptions. Due to the lack of responsibility and liability Bayer has falsely mislead consumers and they are feeling the pain. There is no proof that these drugs were tested prior to going on the market and no one knows how dangerous these birth controls are or whether or not all of the ingredients are being listed. The listing of the side effects and the medical proof of known health scares for Yaz and Yasmin should be enough for the Food and Drug Administration (FDA) to pull the birth control off of the market. After Yaz and Yasmin were put on the market in 2006 the FDA had given Bayer several warnings for using advertisements that were considered to be slick.
Bayer referred to the birth control as a cure for all female problems caused by their menstrual conditions. They were also warned about using low quality ingredients that were found when a routine inspection was conducted in 2009 at their plant in Germany. These findings were due to failure to test final products before they were shipped to the U.S. and the use of equipment that was unclean. The cycle of producing and distributing drugs has become the go to method for every ache and pain complaint. The manufacturers are working closely with the physicians and hospitals to push these drugs and increase their product usage by indicating the multitude of advantages. The first round of introduction to these drugs comes from the samples that manufacturers are dishing out to physicians and hospitals for free. The problem that consumers have is that they are struggling to survive and more and more medications and medical supplies are being recalled for possible dangers.
The worst part about the situation is that paying has not deterred Bayer from continuing to profit from the use of the birth control pills. The FDA has regulations that are set into place based on the intended use of a medication before they will approve it. However, the FDA has no interest in approving the chemical compounds that are used, they are only concerned with the use of that chemical compound for a specific condition and its dosage which is what the FDA reviews. One of the tactics that manufacturers will try to use are the ‘off-label ‘uses that have not been approved or has not been submitted to the FDA. The promotion of non-approved drugs are prohibited by the FDA and Bayer violated that regulation by promoting Yaz and Yasmin off-label for unapproved uses which has been proven to be an ineffective medication.
The use of the marketing technics that were used by Bayer was a misrepresentation of what the products side effects were and how deadly that product could be to consumers. The FDA is not responsible for product safety or any of their promotion campaigns but they do require manufacturers to maintain accurate study practices of their products and report the unadvertised side effects. Although the FDA is a regulatory agency, they cannot monitor every move that a manufacturer makes. The idea that Yaz and Yasmin can be used for multiple problems makes them the top selling drugs for Bayer. But the FDA should also consider reviewing the side effects for the generic version of the birth control Ocella, which can cause deep vein thrombosis (DVT) also known as a pulmonary embolism.
The possibility of mass tort is prominent amongst law firms and the lawyers are looking for ways to up the ante in any lawsuit against major manufacturers. There are often times when the attorneys have altered the results of medical tests and created new results by using their own independent medical examiners. This is a tactic where lawyers have recreated the level of illness and will request the plaintiffs to demand more from the company. There are numerous law firms advertising the risk involved with birth controls and other medications. With the economy at an all-time low consumers are willing to have their voices heard in court if it will produce a check and the lawyers are willing to oblige them. As we all know talking to a lawyer initially is free and being able to target the complaint is the job of the lawyers whereas they are like dogs hovering over the same flavor of bone and looking for the cases that will produce the most revenue.
Sometimes manufacturers have too much on their plates and they try to mass produce products and the possibilities of mixing the wrong ingredients can be fatal to the consumers. A good recommendation to Bayer is that they focus more on the actual production process to ensure that the drugs that they are producing are made with quality ingredients and put less focus on their profitable benefits. The Bayer manufacturer has an obligation to list all of the risks associated with the drugs that they produce, and the possibility that the drug could be life threatening. Because birth control is one of those prescriptions that is strongly recommended for the prevention of pregnancy, tighter regulations are needed so that the drugs can perform properly and hopefully lessen the list of side effects.
The biggest recommendation for the Bayer manufacturer is for them to take the Yaz and Yasmin birth control pills off of the market immediately. This will allow for them to be able to settle all of the claims that are still pending and hopefully put an end to any future claims. The Bayer manufacturer will also have to consider the amount of negative publicity that is taking place. If they choose to continue promoting these forms of birth control they will need to reevaluate the uses to determine the best safety measures to use when advertising. By now Bayer should have learned that spending $20 million on commercials to advertise is a total waste of money when the product is essentially a death pill. The most important aspect for Bayer is that they promote medication that is used for shorter periods that will decrease the side effects but do the job that it is intended to do. Otherwise, Bayer will be labeled as the “Killer Company”, but they are not far from that theory. References
Herbert, T., & Ingulli, E. (2012). Law and ethics in the business environment (7th ed.). Mason, OH: South-Western Cengage Learning.
Retrieved on March 10, 2013 from- http://www.drugwatch.com/yaz/lawsuit.php
Retrieved on March 11, 2013 from- http://lawsuits.lawinfo.com/Yaz/index.html

Similar Documents

Premium Essay

Products Liability Research Paper: Brazilian Blowout

...Products Liability Research Paper: Brazilian Blowout By Tekendrea Fayne LEG500011VA016-1126-001: Law, Ethics & Corp. Governance Francis Hatstat Strayer University September 9, 2012 Premises Brazilian Blowout Professional Treatments are use of innovative and breakthrough bonding technologies, these treatments actually improve the health and condition of the hair by creating a protective protein layer around the hair shaft to eliminate frizz and smooth the cuticle. These treatments aim to smooth out unruly curls and waves and to reduce frizz. However, the treatments do not guarantee completely straight hair. If the Brazilian Blowout is performed correctly, about 50 to 80 percent of the curl can be reduced depending on the original hair texture. Treatments last around 10–12 weeks and repeating the treatment every few months will allow for treatment of new growth. Depending on the treatment used downtime, after it is performed ranges from no-wait to a 72 hour period in which the recipient cannot wash or wet the hair, exercise, tuck the hair behind the ears, or pin it up with any hair clip, pony tail holder or headband, as doing so may compromise the result of the treatment. The treatment on average cost about $150–$600 depending on the hair length. FDA states that Brazilian Blowouts are hazardous to the health of the women who use them and hairdressers who apply them. The concern is over the “alleged” presence of formaldehyde in the hair smoothing...

Words: 1664 - Pages: 7

Premium Essay

Week 10 Fin 410 Assignment 4

...Assignment 3. Use the Internet to research loan types that the bank offers, nontraditional banking products that the bank offers, and its loan policies. Write a six to eight (6-8) page paper in which you: 1. Provide an overview of the principal types of deposits offered by this bank, indicating the competitiveness of these offerings. 2. Analyze how the bank manages its non-deposit liabilities. Focus on the options that are open for investors and what the bank does with its customers’ funds. 3. Recommend improvements needed for more effective management. Provide support for your recommendations. 4. Analyze the principal types of investment banking, insurance, and other nontraditional banking products offered by this bank, indicating the competitiveness of these offerings. WEEK 10 FIN 410 ASSIGNMENT 4 To purchase this tutorial visit here: http://mindsblow.us/question_des/WEEK10FIN410ASSIGNMENT4/1679 contact us at: help@mindblows.us WEEK 10 FIN 410 ASSIGNMENT 4 Managing a Bank’s Sources and Uses of Funds Use the same large bank you selected in Assignment 3. Use the Internet to research loan types that the bank offers, nontraditional banking products that the bank offers, and its loan policies. Write a six to eight (6-8) page paper in which you: 1. Provide an overview of the principal types of deposits offered by this bank, indicating the competitiveness of these offerings. 2. Analyze how the bank manages its non-deposit liabilities. Focus on the options that are...

Words: 1827 - Pages: 8

Premium Essay

Fin 410 Wk 10 Assignment 4

...FIN 410 WK 10 ASSIGNMENT 4 To purchase this visit here: http://www.activitymode.com/product/fin-410-wk-10-assignment-4/ Contact us at: SUPPORT@ACTIVITYMODE.COM FIN 410 WK 10 ASSIGNMENT 4 FIN 410 WK 10 Assignment 4 - Managing a Bank’s Sources and Uses of Funds Use the same large bank you selected in Assignment 3. Use the Internet to research loan types that the bank offers, nontraditional banking products that the bank offers, and its loan policies. Write a six to eight (6-8) page paper in which you: 1. Provide an overview of the principal types of deposits offered by this bank, indicating the competitiveness of these offerings. 2. Analyze how the bank manages its non-deposit liabilities. Focus on the options that are open for investors and what the bank does with its customers’ funds. 3. Recommend improvements needed for more effective management. Provide support for your recommendations. 4. Analyze the principal types of investment banking, insurance, and other nontraditional banking products offered by this bank, indicating the competitiveness of these offerings. More Details hidden... Activity mode aims to provide quality study notes and tutorials to the students of FIN 410 WK 10 Assignment 4 in order to ace their studies. FIN 410 WK 10 ASSIGNMENT 4 To purchase this visit here: http://www.activitymode.com/product/fin-410-wk-10-assignment-4/ Contact us at: SUPPORT@ACTIVITYMODE.COM FIN 410 WK 10 ASSIGNMENT 4 FIN 410 WK 10 Assignment 4...

Words: 619 - Pages: 3

Premium Essay

Rwt1 Research Paper

...Business Research Report New product line recommendations Table of Contents Executive Summary 3 Introduction 4 Research Findings 4 Finding Number 1 4 Finding Number 2 5 Finding Number 3 5 Recommendations 5 Conclusion 6 References 7 Executive Summary The company has recently decided to expand its product line to include a product that is a deviation from our traditional offerings. The expansion presents two potential outcomes. Outcome one has a potential for profit, incremental growth, and additional market share for the company. Outcome two has a potential for financial loss, reputation or brand damage and reduced market share. We have analyzed our current assets, liabilities, revenues, operational expenses, and credit history in order to make realistic and informed decisions about the expansion. In addition, a clear understanding of the company’s current capabilities in regards to financing, marketing and production had to be ascertained in order to develop and recommend a course of action. The research and analysis that was conducted was showing a clear need for the new product line in the desired market and the financial portion of the analysis showed that the potential gains of venturing into the new product line outweigh the risk to the company’s finances and brand. The recommendation to proceed will be cautious but aggressive and in two phases. Phase one will involve small-scale implementation of all needed infrastructure for the new product...

Words: 2167 - Pages: 9

Premium Essay

Products Liability

...Products Liability Research Paper Tonya Bailey Strayer University LEG 500---Law, Ethics, and Corporate Governance Professor Lynn Macbeth June 2, 2012 Products Liability Introduction As consumers, we purchase products that we feel are beneficial to us in some way or another. The products that we decide and choose to purchase are solely up to the individual. If there is a problem or accident that may occur a result with use of that product, then the consumer is liable. But producers and manufacturers are not exempt being that it is there product, and this is where legal liability issues occur. “Product liability refers to the responsibility of manufacturers for injuries and damages caused by their products” (Hellriegel & Slocum, 2011, pg. 52). In this paper, I will examine the Toyota Motor Company and how this company has been the subject of a product liability lawsuit. First, I describe the company and the product safety issue that led to the lawsuit. Next, I will discuss the legal theories used by the plaintiff to recover in this lawsuit, how the lawsuit was resolved, and why I agree with the decision in the case. Then, it will be relevant to mention the changes that have taken place in the company to ensure greater safety of this product or its products, including specific policies that the company has put in place to protect consumers and end users who purchase and use its product. Afterwards, I will discuss the regulatory agency that oversees the particular...

Words: 773 - Pages: 4

Premium Essay

Finance Cases

...to Content TermPaperWarehouse.com - Free Term Papers, Essays and Research Documents The Research Paper Factory * Join * Search * Browse * Saved Papers ------------------------------------------------- Top of Form Search Bottom of Form * Home Page » * Business and Management Jonesville Candy Company In: Business and Management Jonesville Candy Company Jonesville Candy Company 123 Candycane Lane, Ozark, Aekansas 20034; Charity Bank Attention: Lola Banks 435 Hopeful Lane Ozark, Arkansas 20034 Dear Mrs. Banks: I am writing to request a Line of Credit for Jonesville Candy Company.   We need the loan to help with the current and future growth of the company.   Jonesville Candy Company has been in business for three generations selling a variety of candy products.   We have recently been successful growing our private label products.   This particular product allows large customers to choose a product and have it packaged in specified packaging and shipped as directed to their customers or to customer for their sale.   We would like to expand this opportunity for the company. I have evaluated our financial statements and prepared forecasts for the next five years which you will find enclosed.   There are a few areas I would like to point out while you are reviewing the financial statements and forecasts. First, you will notice that we have significant assets with minimal liabilities.   I have estimated an increase in sales of approximately...

Words: 379 - Pages: 2

Premium Essay

Legal and Business

...women’s clothing and specializes in high-end women’s winter fashions. Normandale, a retailer, sells high-end products in malls throughout the country. With Mathis’s high costs, Normandale is unable to make a profit from the sale of Mathis’s products. Countess Lori-Ann (CLA) is a Mathis competitor. Normandale sends photographs and samples of the Mathis line to CLA and instructs them to make an identical line at a lower price. Mathis labels are easily discernable in the photographs and the samples have the Mathis label attached. CLA copies the Mathis line for Normandale. CLA sells the clothing to Normandale at a low price allowing Normandale to sell the products for a total gross profit of nearly $3 million, an increase of nearly 50% over its sale of Mathis products. Mathis discovers that Normandale is selling counterfeit products, and sends several cease-and-desist letters to them—to no avail. Mathis then sues Normandale alleging Normandale has engaged in illegal conduct. Normandale counters that it did nothing wrong. Research business law in regard to protection of intellectual property using your textbook, the Argosy University online library resources, and the Internet. Based on the facts of the case and research, write an analytical paper. In the paper, respond to the following questions: •Was it ethical for Normandale to sell the alleged knock-off products at a lower price? Explain. •What federal or state laws protect owners of intellectual property? How do they...

Words: 321 - Pages: 2

Premium Essay

Assignment 2: Lasa 1: Legal and Ethical Leadership and Management

...of women’s clothing and specializes in high-end women’s winter fashions. Normandale, a retailer, sells high-end products in malls throughout the country. With Mathis’s high costs, Normandale is unable to make a profit from the sale of Mathis’s products. Countess Lori-Ann (CLA) is a Mathis competitor. Normandale sends photographs and samples of the Mathis line to CLA and instructs them to make an identical line at a lower price. Mathis labels are easily discernable in the photographs and the samples have the Mathis label attached. CLA copies the Mathis line for Normandale. CLA sells the clothing to Normandale at a low price allowing Normandale to sell the products for a total gross profit of nearly $3 million, an increase of nearly 50% over its sale of Mathis products. Mathis discovers that Normandale is selling counterfeit products, and sends several cease-and-desist letters to them—to no avail. Mathis then sues Normandale alleging Normandale has engaged in illegal conduct. Normandale counters that it did nothing wrong. Research business law in regard to protection of intellectual property, using your textbook, the Argosy University online library resources, and the Internet. Based on the facts of the case and research, write an analytical paper. In the paper, respond to the following questions: • Was it ethical for Normandale to sell the alleged knock-off products at a lower price? Explain. • What federal or state laws protect owners of intellectual property? How do they apply...

Words: 375 - Pages: 2

Premium Essay

Annual Business Summary of a Company

...Partnership Business Location: Savar Date Established: 9th March, 2009 Business Owner(s) Name: * Nafisa Anjum Era * Saidul Nahiyan DIP * Jerin Tasnim * Md. Jahidul Islam Relevant Owner Experience: New in business. Products: Cotton The Market Target Market: Our target market is Bedding Store Owners and Mattress companies. They would buy our product because of our product quality. Market Strategy: Our local clients are getting benefit from our services greatly because they get foreign quality goods at very competitive rates and in some cases, less than the local market rates.  In addition to that, they get more durable and better quality material compared to the material available in the local markets. Hence, our customers get foreign quality material at or below the local rates of the same.  Our services to foreign suppliers have also been appreciated because of our skills. The future Vision Statement: As we are working with garments jhut, it will be a great environmental help. As because of capital shortage we cannot buy spinning machines. We want to expand our business to yarn production later on. Goals: We will finance an experimental section where we will experiment with garments jhut. Finally we want to produce paper from garments jhut. The Finances We intend to make 2,000,000 taka profit in a year. As it is a partnership business, we are not taking any loans. We are all contributing our own property to establish our business. And we want to...

Words: 2560 - Pages: 11

Premium Essay

Kudler Foods

...Legal Focus Legal Focus Abstract There is a vast legal world in relation to product liability. This paper will identify what product reliability involves as it relates to the food industry. It will also highlight Kudler Fine Foods and show different strategies to assist in avoiding legal issues with product liability. Finally, the paper will highlight database tools researched specifically to help avoid product liability legal issues. Legal Focus Product liability has taken a turn over the years and has forced the public and government to pay closer attention to food labels, especially dietary supplements. The food industry is highly competitive and the high regulations could cause severe profit margin decreased in companies who do not legally represent themselves appropriately. Claims against companies in the food industry There are several areas where companies need to watch out for. The world is changing into this environmental friendly monster, which is outstanding, and it is affecting the food industry in the claims companies have to deal with. State consumer protection acts are other avenues where lawsuits can develop. “Food and beverage companies often face litigation in more than one jurisdiction, with more than one plaintiff, represented by separate sets of plaintiffs’ counsel” (http://www.sidley.com/productsliabilitylitigationfoodindustry/)...

Words: 928 - Pages: 4

Premium Essay

Financial Risk Management

... will definitely aide in making a good, sound business decision of which type of business to invest in. This paper will discuss the role of limited liability corporations and partnerships; and also provide a scenario of what circumstance would cause one to choose a particular type of business to invest in, or own, over of the other. Roles of Limited Liability Corporations Limited Liability Corporations also known as LLCs are numerous and they provide various products and services today. However, the roles of Limited Liability Corporations were established to grant protection to business members from losing their personal assets in litigation. According to Gitman, L. J. (2009), “LLCs are permitted in most states and may enjoy taxation as a partnership and can own 80 percent ownership of other corporations and partnerships” (pg. 8). “If the LLC is properly formed and operated under state law, its members are not personally liable for the entity’s debts and obligations. An LLC that has at least two members is classified as a partnership for federal tax purposes unless the members elect to be taxed as a corporation” (www.lexisnexis.com/lawschool/study/understanding/pdf/PshipTaxCh1.pdf pg. 12). Shares of LLC’s can be owned by non-residents of the U.S. Corporate joint ventures or projects developed through a subsidiary works best for businesses that are Limited Liability Corporations. Roles of Partnerships The roles of partnerships are to accomplish partner’s satisfaction in...

Words: 905 - Pages: 4

Premium Essay

Acc 561 Week 2

...A++PAPER;http://www.homeworkproviders.com/shop/acc-561-week-2/ ACC 561 WEEK 2 You are interested in establishing a small business, and you must decide which form of business organization would best suit your unique product or service. Consider legal, tax, accounting, and other implications when selecting from the four business types. Write a paper of no more than 1,250 words discussing your small-business idea. Include the following: The advantages and disadvantages of the different forms of business organization, which include the following: Sole proprietorship Partnership C corporation S corporation The different types of financial statements required by law with each form of business organization, including different names for the equity sections. This does not mean an overview of what is on each statement. What entities are required by law to have statements and what is the difference in the equity? The following consequences associated with each form of business organization: Tax implications Legal implications Accounting implications, such as SOX, GAAP and FASB An explanation of the unique product or service your small business provides Your choice of business organization form for your new business Your rationale for choosing this form of business organization For tax implications for each entity, your book only says that some entities have advantages. Do some research to determine what the tax advantages and...

Words: 342 - Pages: 2

Premium Essay

Liverpool

...How Fair Value Measurement Changes Risk Management Behavior in the Insurance Industry JANUARY 2013 SPONSORED BY Financial Reporting Section Society of Actuaries PREPARED BY Bruce B. Rosner, FSA, MAAA Ernst & Young LLP Mark J. Freedman, FSA, MAAA Ernst & Young LLP The opinions expressed and conclusions reached by the authors are their own and do not represent any official position or opinion of the Society of Actuaries or its members. The Society of Actuaries makes no representation or warranty to the accuracy of the information. In addition, the discussion and examples presented in this paper are for educational purposes. They are not to be viewed as an authoritative statement by the Society of Actuaries or Ernst & Young LLP on the quality and/or appropriateness of an individual company’s practices or an indicator of “better” practice from one company relative to another. © 2013 Society of Actuaries, All Rights Reserved Acknowledgments We would like to acknowledge and thank a number of individuals who contributed to the success of this study: • Ronora Stryker and Jan Schuh from the Society of Actuaries for providing leadership and coordination The Project Oversight Group for guidance throughout this project: • Robert Baldwin • Mark Bergstrom • Jim Bridgeman • Joonghee Huh • Kathryn McCarthy (Chair) • James Norman • Jim Reiskytl • Doug Van Dam The companies that volunteered to be interviewed anonymously for this study Other members of the Ernst & Young team who...

Words: 15078 - Pages: 61

Premium Essay

Law 531

...remember this syllabus is considered the ruling document. Copyright Copyright ©2009 by University of Phoenix. All rights reserved. University of Phoenix© is a registered trademark of Apollo Group, Inc. in the United States and/or other countries. Microsoft©, Windows©, and Windows NT© are registered trademarks of Microsoft Corporation in the United States and/or other countries. All other company and product names are trademarks or registered trademarks of their respective companies. Use of these marks is not intended to imply endorsement, sponsorship, or affiliation. Edited in accordance with University of Phoenix© editorial standards and practices. Course Description                                                                                                            This course prepares students to evaluate the legal risks associated with business activity. Students create proposals to manage an organization’s legal exposure. Other topics include the legal system, alternative dispute resolution, enterprise liability, product liability, international law, business risks, intellectual property, legal forms of business, and governance. Policies Faculty and students/learners will be held responsible for understanding and adhering to all policies contained within the following two documents: • University policies: You must be logged into the student website to view this document. • Instructor policies:...

Words: 2508 - Pages: 11

Premium Essay

Legal Forms of Business

...considering the preferred legal form of business, it comes down to the level of liability, the size of the business and the number of owners or shareholders that will be involved. It is important to consider that with the increased size of a business and the increase in the number of owners, the decision-making process becomes more complex. The level of liability for the owners decreases as the owners no longer are liable for the losses and gains of the business within larger legal forms of business. Of the legal forms of business; sole proprietorship, partnership, limited liability partnership, limited liability company, S corporation, franchise, and corporate; some businesses may only qualify to be classified as one or two of the legal forms of business, making the decision easier for the owners to choose. Sole proprietorship: A sole proprietorship is a for-profit business owned by one person who may operate the business alone or employ others. The sole proprietor of the business is responsible for assets, losses, and debts. There is also no legal distinction between the sole proprietor and the business (Cheeseman, 2012). A small business, such as a coffee shop would be a prime candidate for a sole proprietorship. The owner could run the coffee shop alone or employ others to operate the business. A sole proprietorship can be more difficult to raise long-term capital for, because of unlimited liability and that the business depends on the health of the owner. An investor...

Words: 2170 - Pages: 9