BUSINESS ORGANIZATION AND BUSINESS TORTS Suppose that Stacy’s mail-order, gluten-free, blueberry muffin business has begun to grow. After signing the contract with Woody, Stacy felt more secure in her

BUSINESS ORGANIZATION AND BUSINESS TORTS

Required Material

This module focuses on business organization and business torts. We begin this module by learning about the ways to organize a business. Start by reading the following resources:

Appendix B: Legal business structures. (2014). In S. Shane (Ed.), Enhancing the managerial DNA of your small business. Expert Business Press. Available in the Trident Online Library (EBSCO eBook Collection).

Chapter 1: Organizing Your Business, in:
DuBoff, L. (2004). Law (in plain English) for small business. Sphinx Publishing. Available in the Trident Online Library.

The following chapters focus on business liabilities and torts. Please take time to read carefully through these resources.

Chapter 7: Introduction to Tort Law, and
Chapter 17: Products Liability, in:
Mayer, D. (2012). Foundations of business law and the legal environment. Saylor Foundation. Available in the Trident Online Library.

BUSINESS ORGANIZATION AND BUSINESS TORTS

Assignment:

Suppose that Stacy’s mail-order, gluten-free, blueberry muffin business has begun to grow. After signing the contract with Woody, Stacy felt more secure in her supply of blueberries. She decided to take on the title of “CEO” of her business and she now has two employees, friends from a book club where she used to bring her muffins.

Stacy is concerned that, now that her business is rapidly growing, that she may face problems of potential lawsuits and liability. She has asked you to recommend a formal legal structure for her business.

Carefully review the background materials on business organization and tort law. Then, write a 2- to 3-page paper discussing what potential liability risks Stacy faces and the kind of legal structure Stacy should adopt. Specific issues to be covered in this paper include:

1. What kind of liability might Stacy’s business face? Refer to the required background readings on business torts and products liability in your answer.

2. What kind of legal structure should Stacy adopt for her business, and why? Will the structure that you recommend address her potential liability? Refer to at least one of the required or optional readings from the background materials page to support your answer.