Business Law And Ethics

Running Head: BUSINESS AND CORPORATION LAW
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Business Law and Ethics
6/19/2019
Student’s Name

Business Law And Ethics 1
Contents
Question 1........................................................................................................................................2
Question 2........................................................................................................................................3
Question 3........................................................................................................................................5
Question 4........................................................................................................................................7
References........................................................................................................................................9

Business Law And Ethics 2
Question 1
Every person is liable for the wrongful doings. Tort Law is a branch of Civil Law, that provides
the provisions related to a tort committed by people. Here tort refers to a Civil wrong. A tort can
be innocent as well as intentional. Negligence is a kind of unintentional tort where a person fails
to perform the duty of care in a reasonable manner. In general, a person who commits negligence
can be held liable for the same but there are some situations where another person can be held
liable for the tort of others. Vicarious liability is a situation where for the negligence of
employees, the employer can be held liable (Pureemploymentlaw.co.uk, 2016). Not only under
Tort Law, but under contract relationship also, an employer held liable for the act of employees
because of employee act as an agent of the employer. It means for the negligence of an
employee, two people are liable. One is that employee and another one is his/her employer.
An employer can be held responsible for the torts of an employee when the tort is committed to
the course of employment. It means an employer cannot be held liable for every tort of the
employee. Here, in the given case, Jonathan was the employee who was driving the bus and
Tiffany Mato was a pedestrian who was walking across the road. The shift of Jonathan was
supposed to end at 17:00 and he was late. In order to reach early to bus depot, he was driving fast
and could not see the red signal of road light on time. Because of this, Tiffany got her leg break
and suffered a concussion. It was the negligence of Jonathan so he will be liable for the same. In
addition to Jonathan, his bus company also seems to be held liable under the provisions of
vicarious liability. He was working on behalf of the company and his negligence occurred in the
due course of employment. It will be irrelevant to see that his shift ended up to 17:00 as he was
still driving the bus provided by the company.

Business Law And Ethics 3
Further to test the criminal liability, in this case, this is to mention that no one else is liable for
the criminal offense of others, not even the employer of an employee and therefore bus company
of Jonathan will have no liability in Criminal Law.
Question 2
The different business acts under different business forms according to the nature and size of
business. Although many business forms are there some of them are very common and
significant that will be discussed further. The very basic business structure is sole proprietorship
concern. As the name implies a sole person is liable to manage all the business activities in this
kind of business form. The person takes all the advantages out of a business and is responsible to
bear all the losses. The main query of the question is to select an appropriate business structure
for the business of Jonathan and Mike. As two people are involved hence sole proprietorship is
not available for them in this case. Other options that seem to be available in this case are
partnership firm and company structure. Trust is also an option but that is for a nonprofit
organization. It means Jonathan and Mike can even adopt a partnership structure or may go for
company structure. Both of these structures have some pros and cons, which are details as
hereunder:-
Partnership Firm: - It is a business structure where two or people carry economic business
activities in order to earn and share profits. This form provides many advantages such as easy
formation. Unlike company structure, a partnership can be formed in a very easy manner. In
order to set up a partnership firm, partners have to choose a name for the business and nominated
partner (Gov.uk, 2019). Further partners have to prepare and sign a partnership deed that
stipulates all the rights and obligations of partners and partnership firm can come into existence