Question 3 Amy and Barbara each owned 50% of shares in a small corporation calle

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Question 3

Amy and Barbara each owned 50% of shares in a small corporation called All Things, Inc., which was formed for the purposes of operating the All Things department store. After a series of shoplifting thefts, Amy contacted Security Services, LLP to hire some plainclothes in-store detectives to capture the shoplifters. Security Services was a limited partnership established in 1990 by Chuck and Duke in the state of California.

Amy and Super Security Services entered into an agreement where Chuck would provide security services for All Things on a half-time basis. Chuck would monitor in-store cameras installed by Security Services and patrol the store in plain clothes for twenty random hours a week, exercising his own expertise and discretion in maintaining the operation. In return for such services, All Things, Inc. paid a flat rate of $200 per hour to Security Services. As part of their agreement, All Things had the right to override Chuck’s decision to detain a particular suspect, and also prohibited the carrying of firearms.

Last week, Chuck detained Eddie at the store for suspected shoplifting. An altercation developed, during which Eddie was shot in the foot with a gun carried by Chuck. All Things, Inc. has since discovered that both Chuck and Eddie are former members of enemy gangs, and that the Chuck made up the shoplifting charges against Eddie just to get him into trouble. Eddie intends to bring a lawsuit against All Things, Inc. for false imprisonment and battery. Evaluate the potential liability of the following:

1. Chuck

2. Duke

3. Super Security Services, LLP

4. All Things, Inc.

5. Amy

6. Barbara

Explanation / Answer

Chuck - There are a lot of potential liabilities for Chuck because there can be charge of lies, hiding actual identity, charging for a false case, possession of weapon and attempt to murder. Chuck did not disclose his actual identity, that he is a former gang member therefore it holds charge for lie and hiding the identity. Chuck charged Eddie for theft which was actually a false charge made just in vengeance therefore the charge here will be trying to lead a false case and finally carrying the gun and shooting Eddie on the foot will lead to possession of weapon and attempt to murder or assault.

Duke - Duke is the co owner of security services and the potential liability that he may face is because he has doing business with a former gang member. He has not conducted a proper background verification of his partner and he may also be charged because the law may feel that even he was aware about Chuck's past.

Super Security Services, LLP - The organization will be charged based on the charges on Duke and Chuck, in addition a violation or breach of agreement is also done by them because the agreement restricted firearms which was not followed by Duke. The organization may get seized by the court if they suspect that the background verification is not done properly here and one of the owner is a suspected criminal.

All Things, Inc. - The potential liability of All Things, Inc. is the illegal assault over Eddie because it was done by their hired security staff but is charges against Chuck are proved then All Things, Inc. may be declared innocent.

Amy and Barbara - The potential liability of Amy and Barbara is almost the same as that of All Things Inc. and if the charges against chuck is proved then Amy and Barbara will not be held responsible for any incident that took place.

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