Critical Thinking and Ethic Cases Ch.15 Questions and Answers100% Accurate

Critical Thinking and Ethic Cases Ch.15 Questions and Answers100% Accurate Siva V. 1138 LLC (Facts) -Five Members entered into a Limited Liability -Ruthiran Siva Owned building they rented -It was a 5 year lease for $4,000 a month -Six months later 1138 was in default and broke lease agreement -Siva sued 1138 and Hess personally Siva V. 1138 LLC, (Decision) The court of appeals held that Hess, as a member owner of 1138 LLC, was not personally liable for the debt that the LLC owed to Siva. The court if appeals affirmed the decision of the trial court that dismissed Siva's complaint against Hess Rainey V. Domino's Pizza, LLC(Facts) -Domino's granted a franchise to TBDO Inc -Agreement stated that TDBO was a independent contractor -Domino's was not liable for TDBO's debts and obligations -Edward Langen hit Paul Rainey while delivering a pizza -Rainey sued Langen, TDBO, and Domino's Rainey V. Domino's Pizza, LLC(Decision) The case against Domino's pizza was dismissed on summary judgement motion as the court upheld the franchisor-franshisee relationship as a matter of well-established law 15.1 Martin v. McDonald's Corporation (Facts) -McDonald's franchise in Oak Forest, Illinois -McDonald's security manager visited and informed them of new security procedures -Security Manager never followed up -one month later a robbery took place -Peter Logan stole money, killed one girl, and assaulted two others -Martin's Parents sued McDonald's for negligence 15.1 Martin v. McDonald's Corporation (Decision) The appellate court held that McDonald's was negligent for not following up and making sure that the security deficiencies it had found at the Oak Forest franchise had been corrected. Affirmed. 15.2 Evanston Insurance Company v. Dillard Department stores Inc. (Facts) -Damon Chargois and Cletus Ernster formed a LLP called CELLP -CELLP prosecuted Lawsuits against Dillards claiming it racially discriminated against customers -Created a website with Dillards -Chargois and Ernster dissolved thier LLP -Dillard sued CELLP for copyright infringement and cyber piracy -The court order CELLP to pay Dillard $143,500 -Since CELLP was no longer active he sued Chargois and Ernster claiming they were personally liable 15.3 Evanston Insurance Company v. Dillard Department stores Inc.(Decision) The defendant's claim of limited liability was found to be invalid by the appellate court due to the individual actions of each defendant 15.4 Fuzzy Toys, LLC v. Catherine (Facts) -Angela, Yoko, Cherise, and Serena for a LLC called Fuzzy Toys -Each member contributes $50,000 as their capital contribution -They purchase $800,000 of liability insurance -Produce a doll -A part of the doll is breaking off and some children are swallowing it -Catherine a 7-year old child swallows the piece and is severely injured 15.4 Fuzzy Toys, LLC v. Catherine (Decision) -The jury awards Catherine $10 million dollars -The members of Fuzzy toys only owe $50,000 each since its is a LLC -She also gets the $800,000 in liability insurance 15.9 iN LLC (Facts) -Christopher, Melony, Xie, and Ruth formed a LLC -Created a device -Cost $29 to make and profit was $25 -Melony sells the plans and drawings for the unit to a competitor for $100 million -The competitor then comes out with the product and beats the LLC to the market -As a result they suffer $100 million in damages 15.9 IN LLC(Decision) Melony is liable because she is a manager and broke the Duty of Care by making a secret profit. 15.10 Wickham v. The Southland Corporation (Facts) -Vallerie Campbell purchased an existing 7-11 and became a Southland franchisee -Obtained a beer and wine license -Jesse Lewis Cope purchased a beer from the seven eleven and then drove a car and got into a accident -The parents sued Southland and not Campbell 15.10 Wickham v. The Southland Corporation (Decision) The Court dismissed the case against southland as the court held that southland was not properly sued in this matter and no agency was established as a matter of law