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Assignment 2: Legal Problems Managing a Small Business Part II Read the scenario and the questions that follow. Note that this scenario is a continuation of the scenario from Week 3, Assignment 2....

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Assignment 2: Legal Problems Managing a Small Business Part II
Read the scenario and the questions that follow. Note that this scenario is a continuation of the scenario from Week 3, Assignment 2. Identify the legal issue(s) and apply legal concepts and possible arguments for each question. Prepare a solution for each question using laws, cases, examples and/or other relevant materials. Identify potential ethical issues and propose a solution for each issue. Support your answers with information from the textbook and at least two outside scholarly sources. By Tuesday, October 1, 2013, prepare a 6 to 9 page paper that identifies the legal issues and potential solutions and answers all questions presented, supported by relevant legal authority. Properly cite all sources using APA format.
This assignment primarily requires application of the concepts learned in Weeks 4 – 5; however, some concepts from Weeks 1 – 3 may also be included.
Scenario
After being laid off from the construction firm where he has worked for 20 years, Dad started his little handyman business. With a downturn in the economy, Dad found that people repaired things instead of replacing them, so his services were always in demand. Chad worked with his father (Dad) in the afternoons and on the days he didn’t have classes in construction management at the university, since his father needed some help with the growing business.
By the time Chad graduated from college, the handyman business employed three additional full-time workers and picked up a few day laborers as needed.
Dad and Chad were carrying a large Jacuzzi tub through a customer’s house when the homeowner’s dog jumped up on Dad, causing him to fall and drop his end of the tub. Unable to control the tub, Chad dropped his end of the tub and it went crashing into the homeowner’s brand new $5,000, 65” Sony Smart - 3D television. Dad suffered a back injury and was unable to work for six weeks.
The handyman business owns two work trucks and two vans, each registered to the business and sporting the company name, phone number and website. Joe, one of the full-time employees, often drives one of the vans home at night in case he needs to take care of an emergency repair. One night Joe stopped off at Mike’s Pub to have a couple of beers before going home. On the way home, Joe ran a stop sign and hit Tracy Jackson. Jackson’s car sustained $4,000 in damages and she missed two weeks of work recovering from her injuries. After Joe was released from the hospital one week later, he was arrested for DUI.
Third Bank loaned $50,000 to the handyman business. Chad, Dad and their friend Bill agreed to be co-sureties for the loan. The handyman business defaulted on the loan and Third Bank plans to sue Bill for payment of the loan.
The handyman business agreed to install two new heating and air conditioning units in a 3,000 sq. ft, two-story home. The parties agreed to a price of $8,000 for the purchase and installation of the units. Because the homeowner‘s wife just lost her job, Dad agreed to let the homeowner pay for the units in installments of $1,500 a month. Two months later, the homeowner files for bankruptcy. Dad demands payment of the remaining amount due or threatens that he will repossess both heating and air conditioning units.
Linh Pak was born in Vietnam in 1962 and recently became a U.S. citizen. Linh speaks fluent English with a mild Vietnamese accent. Her accent does not interfere with her ability to communicate with others. Linh applied for a job with the handyman business; however she was not hired for the position.
Assignment
Based on the different situations described in the scenario, create a 6-to-9-page Microsoft Word document that includes the answers to the following:
• Is the business selected in Week 3 still the best type of organization for Dad and Chad? If yes, provide reasons for your selection. If no, then select the appropriate type of business organization for the handyman operation and provide support for your selection.
• Explain the liability of the homeowner, Chad, and Dad for the Jacuzzi tub accident and the types of insurance the parties should have.
• Explain whether the handyman business or Joe is responsible for Jackson’s injuries. Assume each party maintains insurance coverage on their vehicles. Which insurance company will be liable for payment of Jackson’s claims?
• Is Third Bank required to seek payment from the handyman business before demanding payment from the co-sureties?
• Can the bank collect the full amount of the loan from Bill? If Bill pays the loan, does he have a right to contribution from Dad and Chad? If so, how much can Bill recover from Dad and Chad?
• What are the rights of each party- the homeowners and the handyman business -to the heating and air conditioning units and payments owed when the homeowner files bankruptcy?
• On what grounds might Linh have a discrimination lawsuit against the handyman business? Provide support for each ground selected and then provide arguments that the handyman business may make to refute each claim.
• Consider any ethical concerns Dad and Chad may face related to the topics covered.
• Conclude your paper by providing suggestions for Dad and Chad to help prevent future occurrences of these types of legal and ethical problems.
Support your answers with appropriate research, reasoning, cases, laws, and other relevant examples.
Submit the paper in APA format and properly cite sources on a separate page using APA.
Submission Details
Name your document SU_BUS3055_W5_A2_LastName_FirstInitial.doc.

Answered Same Day Dec 29, 2021

Solution

David answered on Dec 29 2021
106 Votes
Running head: CASE STUDIES WEEK 3 1
Case Studies Week 3
Legal Problems Managing a Small Business Part II
Karen L. Campbell
South University Online
CASE STUDIES WEEK 3 2
Case Studies Week 3
As per the case description, the Handyman business was started by Dad, after
eing laid off from the construction firm. In initial days of the business, Chad (son of
Dad) used to support his father in his business operations, whenever he gets time from
his college studies. As the business was in growth stage, so he has supported his father
in business operations when he needed it most. Later on when Chad graduated from
college, he joined the handyman business of his father, where almost three more full-
time employees were hired with that of few daily laborers.
In order to meet handyman business operation obligations, certain events have
taken place, which eventually evoked the legal and ethical considerations for the
usiness. Legal and ethical context, applicable to every such scenarios, has been
discussed and evaluated, with detailed specification and presented as mentioned
elow:
Type of Business Organization
In initial overview, the business of Dad and Chad appears to be family owned business.
As per the definition a family-owned business is that where two or more than two
members belonging to a family incorporate and operate a business and most of the
controlling and management authorities lies within the family. In this specific case also
the two members of a particular family (Dad and Chad) controls and manages the
handyman business operations, thus business organization form should be considered
as family-owned business form. This is one of the most efficient and widely accepted
forms of the business. As per the U.S. Bureau of the Census, almost 90% of American
usinesses are either family owned or controlled by the families. (Magee, 2013)
CASE STUDIES WEEK 3 3
In consideration to the case specification and relative benefits of the family-
owned business, this specific organization form can be considered as most compelling
and preferentially advisable to adopt by Dad and Chad. Due to high strategic focus of
management, effective alignment towards management and shareholders interest and
intense focus on core activities enables the family-owned business to achieve high
growth prospects. Inclusion of strategically competent characteristics like forward
looking decision making approach, willingness to adopt unconventional changes, focus
on sustainability and risk reduction, commitment towards family values and succession
of family in management, makes this specific organizational form highly prefe
ed and
admired alternative of business organization. (Feffer, 2009)
Scenario 1: Jacuzzi Tub Accident
This specific case scenario of „Jacuzzi Tub Accident‟ specifies the situation where
certain damages to home owner have been occu
ed because of the mishandling of
equipment during business operation in progress. As per the scenario, Dad and Chad
had to move large Jacuzzi tub, which eventually fell on the homeowner‟s
and new
$5,000, 65” Sony Smart - 3D television, because of the distraction made by the
homeowner‟s dog. During the incident Dad also got an injury in his back causing
inability to work for six weeks. In this overall scenario there occurs certain legal
implications and liability against reimbursement of damages.
First and foremost liability comes on Dad and Chad, as because of their
mishandling in assigned job, homeowner has to bear with the damages of his personal
property. As per legal norms, any damages caused by the contractor to the customer
ecause of act of mishandling or mismanagement should be compensated. In order to
CASE STUDIES WEEK 3 4
avoid payment of damage compensation from own source, a small business or home-
ased business owner should have appropriate Liability and homeowner‟s Insurance,
which covers the injuries and damages happened on the premise or as a result of
usiness operation. (Edie, 2007)
However, as in this accident Dad also got injured because of the fault of
homeowner‟s dog and earned incapability to work for six weeks. As by hiring Dad and
Chad for casual domestic work the homeowner has attained the position of employer,
which makes Dad liable to receive worker‟s compensation benefit. Thus, homeowner
should also have to compensate Dad for the physical damages, which also been
applied in the case of “Fernandez v. Lawson”. (NAIC, 2010) To protect the interest of
self, homeowner should have the Homeowner's Comprehensive Personal Liability
Insurance Policy, which will provide coverage to injuries or damages and worker‟s
compensation benefits, when other compensation plan fails to cover.
Scenario 2: Joe-Jackson Truck Accident
In this specific case scenario, Joe, who is the full-time employee of handyman business,
had hit the Tracy Jackson‟s car with the company van. Jackson‟s...
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