Question
Annie Chase and her associate have now been operating Brew together for a few months. Things have moved so fast that neither have had time
Annie Chase and her associate have now been operating Brew together for a few months. Things have moved so fast that neither have had time to consider their professional relationship with each other or with third parties. They always use Brew on invoices and service contracts, but Annie has found that vendors need her name when she signs for things. Most recently, she noticed that one of the vendor agreement said, personally liable where she signed. (Annie now realizes that it is time to consider insulating herself from the business. Things are tough enough for her already, as she continues to deal with her fathers advancing illness. So, she resolves to consult an attorney and formalize her business relationship with her friend.) Imagine that you have a law office just around the corner from Brew. During a slow period in the afternoon, in walks Annie Chase seeking advice about choosing a form of business organization. please describe the advice you'd give to Annie by responding to the following questions.
1. What is the first thing you should tell Annie? Hint: Its about professional responsibility and ethics.
2. What form of business organization would you recommend to her? Why?
3. Since joining Brew, Annie has informally considered herself a partner in business with her associate. From a legal perspective, are the two indeed partners at this time? How do we determine that? o Is there something in the definition of Partnership that might answer this question? o If they are partners how does that affect Annie?
4. Back to that personally liable clause. How will such a statement affect Annie in the future if you were to advise her to incorporate or create an LLC?
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