Business Associations and Torts
You plan to open Tots Amore! a full-service diner offering themed dishes featuring your favorite food, Tater Tots. You currently have $50,000 available. You estimate you will need $100,000 to start and operate the diner for 1 year. You also estimate you will need $25,000 a year for re-investment, assuming no growth. You plan on being the sole owner if possible, and having two managers: one for the kitchen-operation side and one for the business side. You are well known in the community and could obtain a loan since you have successfully been in business before.
You could also find people to invest in your diner, but you don't like the idea of losing control. You have already started finding suppliers and buying equipment for your new venture. Your friend, Audrey, has agreed to do much of the footwork, in terms of applications and filings with the state, for a fee.
So far, all has gone well except that last week Audrey forgot to set the brake on her van while dropping off a check to the printing firm that's doing the marketing materials for your new venture. Audrey's van rolled down a hill and crashed through six feet of redwood fence fronting a local tanning salon run by an old friend of yours, Seymour. Seymour's told you that, because of Audrey, you have really put him in a bind, as now he has to pay to fix the fence and business has been terrible for the last few months. With a shabby-looking front fence, he fears he'll get fewer walk-in customers. He's asking you to pay for the fence damage.
Use the above fact scenario to answer the following questions:
1) What form of business should you choose for Tots Amore! and why? Justify your choice in relation to the other reasonable alternatives available to you.
2) Are you and/or Audrey responsible, legally or ethically, for Seymour's fence repairs? Explain why or why not.