CASE PROBLEHS-SHORT ESSAY ANSWERS: 1. A, B, and C plan to go into business toget

Question

CASE PROBLEHS-SHORT ESSAY ANSWERS: 1. A, B, and C plan to go into business together. A and B have limited assets. Cs very weal thy. Would it be advantageous for C to st upon a corporaton? Explain. 2. A bartender of an incorporated tavern egal ly sells liquor to a minor. The act is a crime under the state la. If the bartender is a non-owner, can the tavern be criminally prose- cuted for the 1 1egl sale? Explain. 3. A promoter contracts with B to engage B to manage tion upon its incorporation The directors of ABC Corporation refuse to accept the terms of the contract, and B refuses to be employed by ABC Corporation except on the terms of the contract with the promoter. What are B's rights? Explain.

Explanation / Answer

A- Once A B C plan, it seems business is beyond scope of individual C, simply , to form joint venture its just like finger which are never similar in length but moment get union, it result in skill hand which can develop better performance. with this analogy instate of westing time its better option to insist upon corporation . According to value theory, its regardless volume of resources, the worth of of 10 rs is similar to poor is more, if same is earn by him deploying 100% effort. & worth of 100 rs may be less for rich person if he earn with zero efforts.

2- Here assuming bartender is adult major, and if independent decision of providing liquor to minor is made by himself, then tavern can not legal responsible for act performed by or decision made by bartender. And bartender will behind the bar. But if bartender is minor in that case as master liability clause tavern prosecuted for illegal sale, regardless whether bartender has consented or not, court presume that responsibility shoulder on owner. simply sailing liquor to minor is crime then tavern will face litigation as master is responsible for his servant cause clause,

3- Company run according to company or corporation act, where duties and responsibility of promoter and director are very clearly mansion in first document. Promoter do not hold right to impose any obligation unless it is passed by board of director & approved by competent authority. If Board of director issued such exclusive power to promoters to execute contract behalf company & Board of director refusing then promoter's can sui board of director. Or if such power not available with promoter then B can claim/ demand damages as promoter did the contract beyond his limit & scope.

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