Solution
David answered on
Dec 29 2021
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...