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Module 4 Writing Assignment Frances Drew Bus 116 0901SP 1. Sugarland granted Carlos the right to sell Sugarland's candy products and to use its trademark and trade name in connection with his business. One day, Sue bought a piece of Sugarland candy from Carlos. The candy made Sue ill because it was made with a toxic substance, giving rise to a claim for product liability. Also, the next day Tom slipped while walking in Carlos' store. Tom slipped because Carlos had negligently left a spilled drink on the floor. a. What is the business relationship between Sugarland and Carlos? I would have to say that the relationship is that of Carlos being a Sole Proprietor and Sugarland a vendor to his store. Sugarland does not receive and of the proceeds from the store and has no capital in the store. a. Is Sugarland liable to Tom and/or Sue? Why or why not? The product liability would lie with Sugarland because they are knowingly using a toxic substance in their candy and they are liable to Sue because she was made ill but not to Tom because he was not injured from the product but from a spill that has nothing to do with the candy. a. Is Carlos liable to Tom? Carlos was negligent and is liable to Tom for not cleaning up the spill. Tom can seek damages for his injuries and only Carlos is liable. 2. Andy wants to start his own business. He has decided to rent space in a "strip" mall and open a pet shop. Additionally, he will provide dog grooming services. He figures he can do almost everything himself, though he will need to hire a part-time employee on an "as needed" basis. His friend, Lacy, has agreed to work when needed. Andy is considering operating his business as a sole proprietorship. What are the primary legal advantages and disadvantages to this form of business ownership for Andy's pet shop?... View Full Document

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