the fact that the company and the individual are considered the same entity. This means that the owner of the company is liable for any and all debts the company may accrue and is liable for any lawsuits brought
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incorporation J is a separate legal entity from its founder‚ shareholders and directors as demonstrated in the landmark case of Salomon v Salomon & Co Ltd . Lord Halsbury LC made the judgement that once a company is legally incorporated it must be treated as a separate legal entity. This important legal principle is accounted for in the Corporations Act 2001 s124(1) which states that “a company has the legal capacity and powers of an individual” . Since J is a separate legal entity‚ it can be argued that
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huge debts. The total debts of the business amount to $170000. (a) Advice the creditors as to some of the options open to them. As Nor is a sole proprietor‚ creditors should sue Nor personally and not the sole proprietor‚ as is not a separate legal entity. Thus‚ they are able to sue Nor for debts which he would be liable for under contractual agreements with creditors. As his debts are substantial at $170000‚ suing would probably make him bankrupt as the car and Rolex watch (his assets) would
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considered convenient to permit the company to have its own legal personality. 1 1 Saloman v. A. Saloman & Co. Ltd [1897] A.C. 22. 1 This was a development which was described by Prof. Kahn-Freund as being a “calamitous decision”.2 The effect of the Salomon litigation on company law The central technical-legal question surrounding the modern nature of the company is this: how did the company come to possess the traits of distinct legal personality which it enjoys today? The answer to that
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otherwise have obtained by the company’s separate legal personality.” In the American tradition‚ it is known as lifting the veil of incorporation or the disregard by the courts of the company’s corporate personal or separate existence from its shareholders. In the situation where the veil is lifted‚ the law either goes behind the corporate personality to the individual members or ignores the separate personality of each company in favour of the economic entity constituted by a group of associated
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Everyone knows that it is illegal to drink alcohol until the age of 18. Many people are in agreement with this legal age. Some would even say that it should be raised. However‚ the legal drinking age sometimes causes more trouble than it prevents. Why is 18 the magical age that makes one intelligent and mature enough to consume alcohol? There’s a idea that immature people are less likely to handle the effects of alcohol‚ so why is the random age limit (at age 18). We all know that some people under
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Legal Underpinnings BUS670: Legal Environment Name: Instructor Name: Legal Underpinnings In case of breach of contract liability shall be limited or unlimited depending on the type of activity. There are five types of business organizations in the United States. These forms are sole proprietorship‚ a partnership‚ limited liability company‚ partnership‚ and limited liability company. Each of these formations business has advantages and disadvantages for the employer.
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Legal Drinking Age‚ Why It Should Be Lowered According to Fabian Grund‚ in Why the Legal Drinking Age Should Be Lowered‚ lowering the drinking age comes with many pros‚ including less binge drinking‚ less illegal substance use‚ and if consumed properly‚ it could even be good for your health (Grund 5-8). In the article‚ Fabian Grund says it best: “You can take responsibility to buy a gun‚ get killed in combat or vote for your president‚ but you can’t even buy a damn beer.” (2) In other countries
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Imposing a legal burden upon a defendant will negate the principle of presumption of innocence. If a defendant has to prove their innocence than it would automatically and unconsciously bring up the issue that they were never considered innocent until proven guilty. The presumption of innocence was first articulated in the case of Woolmington v DPP [1935] AC 462‚ 461 where Viscount Sankey LC stated that: ‘Throughout the web of English criminal law one golden thread is always to be seen‚ that it
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important to make sure that your business dealings are in order. The strength of the contract and what all it entails. Knowing that the legal document is important more so when things tend to go downhill. Above all is deciding which type of business entity the company will select especially if the company starts out small and looks to expand. Which entity will best serve the growth of the company such as Acme Fireworks? Some years ago I watched a movie called fight club. The movie dealt
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