Case Study Samuelson Vs. Ftc. V.

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Hardee's officer behaved ethically. According to Samuelson, "The purpose of the FDD is to ensure that the franchisor discloses all relevant facts. It is not a guarantee of quality because the FTC does not investigate to make sure that the information is accurate." (Samuelson, 692) The officer delivered the disclosure document and there was no misstatement in the document. As Samuelson explains, the document doesn't guarantee of the document. If the officer has told a lie to McNeely, McNeely have had the right to claim against Hardee under the state law (Samuelson, 692). In this case, the disclosure document doesn't state any misstatement. In other words, the officer doesn't violate the rules, I conclude that Hardee's officer behaved ethically.
Samuelson explains about LLC that, "Members are not personally liable for the debts of the company." (Samuelson, 679) Therefore, it seems that Leonard is not liable for the debt. However, the debt was caused by Leonard's negligence. In the case of Ridgaway and Silk, Samuelson points out that, "they are liable for their own misdeeds as employees of the LLC." (Samuelson, 680) Also, Samuelson argues that, " The world would be an intolerable place to live if employees were free to be as careless as they wished, knowing that they were not liable because they were members of an LLC." (Samuelson, 680) In the case of Leonard and Anthony, Leonard's negligence leaded to the debt. If the debt weren't due to Leonard's negligence, he is not liable and Anthony cannot claim against Leonard. Therefore, since the debt was caused by Leonard's negligence, Leonard is a personally liable for the debt of an
In the first place, all types of businesses have both advantages and disadvantages. For example, an owner of a sole proprietorship isn't required to register with the government, file a separate tax return, and hire a lawyer. However, the owner is personally liable (Samuelson, 674). On the other hand, managers and investors of corporation are protected from personal liability for debts (Samuelson, 675). In addition, an owner of sole proprietorship need to pay income tax from his income but LLC avoids double taxation (Samuelson, 679). In these points, all types of business owners must follow these rules whenever and whatever they run businesses. However, Samuelson mentions about the size of business. Samuelson points out that, "For this reason, sole proprietorships work best for small businesses without large capital needs." (Samuelson, 674) In comparison, Samuelson explains about corporation that, "In short, corporations permitted the development of large, enduring businesses." (Samuelson, 675) Owners are able to choose whether develop their Internet shopping site larger or not easily. If they want to develop their shop, they need some space. They might need to find room and rent it. However, customers are able to access their web store from anywhere and owners don't need to be concerned space. Therefore,