The company is unable to pay this accident claim the

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no cash on hand. The company is unable to pay this accident claim, the monthly rent for office space or its employees’ wages. Because the employees have not been paid for over a month, the employee’s union has threatened a strike. Albert and Baker have not taken their salary for the past six months in order to help the company financially. They are both very concerned that the company may not be able to continue in business given these recent and significant financial setbacks. 1. Explain the theory of law that would allow the third party injured in the auto accident to make a claim against the Lending Store, Inc. for damages. Include in your explanation the applicability of this general theory of law to the facts of this particular case. The legal theory of vicarious liability can hold one party liable for the conduct of another. This can apply to the lending company because one of their employees was driving a company car during the accident. 2. Explain the defenses the company could possibly assert against this third party’s lawsuit. Include in your explanation the applicability of these legal defenses to the facts of this particular case. In cases of vicarious liability involving companies and their employees the general rule that is followed is Respondeat Superior. This doctrine holds an employer or principal legally
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  • Fall '10
  • williams
  • Bankruptcy, Debt, Chapter 7, Title 11, United States Code, Lending Store, Inc., Lending Store

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Christopher Reinemann
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