MDse lermination.) 36-10. A Question of Ethics-Sole Proprietorship. In August 20

Question

MDse lermination.) 36-10. A Question of Ethics-Sole Proprietorship. In August 2004, Ralph Vilardo contacted Travel Cen- ter, Inc., in Cincinnati, Ohio, to buy a trip to Flor- ida in December for his family to celebrate his fiftieth wedding anniversary, Vilardo paid $6,900 to David Sheets, the sole proprietor of Travel Center. Vilardo also paid to Sheets for a separate trip to Florida in February 2005. Sheets assured Vilardo that everything was set, but in fact no arrange ments were made. Later, two unauthorized charges for travel ser- vices totaling $1,182.35 appeared on Vilardos credit-card statement. Vilardo filed a suit in an Ohio state court against violations of the state consumer protection law. Vilardo served Sheets and Travel Center with copies of the complaint, the sum- mons, a request for admissions, and other documents filed with the court, including a motion for summary judgment. Each filings asked for a response within a certain time period. Sheeis responded once on his own behalf with a denial of all of Vilardo's claims. Travel Center did not respond. Vilardo v. Sheets, 2006 -Ohio- 3473 (12 Dist. 2006)] (See Sole Proprietorships.) of these

Explanation / Answer

Answer B)

As per the facts of the case clearly states that the company Travel Center Inc. is a sole proprietorship. The law states that since a sole proprietorship does not have an identity legally it is the proprietorship who is fully liable for the actions of the proprietorship, as the proprietorship does not have any legal identity of its own. So, therefore, in this case, Mr Sheets is fully liable and liability cannot be transferred to the business.

Allowing sheets to avoid any liability in the manner proposed to buy him would be completely unethical as it would lead to loss of accountability. Mr Sheets could commit wrongdoings in the name of the business and then shift the liabilities on the name of the business followed by filing for the closure of the business. This would allow him to profit from the business wrongfully and also avoid paying penalty for damage caused to the other party.

.

Related Questions

Navigate

• Browse (All)
• Browse M
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.