Question
Phil, Aaron, and Jeff decide to form a lawn care/snow removal business. They come to you, knowing you took a business law class in college,
Phil, Aaron, and Jeff decide to form a lawn care/snow removal business. They come to you, knowing you took a business law class in college, for advice on business organizations. The three men are concerned about potential liability for the business torts and contracts. None of them have ever driven a lawn mower or a snow plow so they want to make sure that if one of them runs into a clients house, takes out some mailboxes and power lines, or injures an innocent bystander that they will not subject their own personal assets to liability. Answer the following. a. Explain the risks of personal liability of each person if they are all general partners in a general partnership. b. Explain the risks of personal liability of each person if Phil, Aaron, and Jeff become equal shareholders in a corporation.
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