Lesson V Research Paper Example | Topics and Well Written Essays - 750 words

Lesson V - Research Paper Example Further, Siva did not act ethically by suing Hess as he had not entered into a personal agreement with Hess but with 1138 LLC. If Siva wanted Hess to be personally liable for the debt, he would have asked Hess to sign the lease agreement in an individual capacity and hence Hess would have been personally liable (Cooper & Lyman, 1998) The appending of Mr. Soskin’s signature on the contract document indicating that he would personally guarantee any defaulted payments by Nashville holds him personally liable to pay the debt (Cheeseman, 2013). He therefore acted as a personal guarantor to Nashville LLC and any failed payments by the company would be recovered from Soskin’s personal assets as he became personally liable by signing a document with a paragraph saying â€Å"I personally guarantee...† If Soskin intended to act as just a representative as he stipulate in his defense, he would have therefore asked for an amendment of the clause which made him personally liable (Cheeseman, 2013) Under the subject of Liability of the franchisor, he case quoted is Martin v. McDonalds Corp. where McDonald’s was sued for negligence. The court’s decision held that McDonald’s was negligent for failure of following up and making sure that deficiencies in security at the Oak Forest Franchise were corrected. The liability of a franchisor therefore affects businesses in the United States as the franchisors are tasked to ensure that security procedures are adhered to and thus manuals should be circulated in all franchised business for conformance (Cheeseman, 2013). In the subject of right to accounting, Steeby v, Fial case is applied where Steeby sued Fial for breach of fiduciary duty while seeking for final accounting. The trial court found that Fial had in his actions violated the partnership agreement and hence breached the fiduciary duty by terminating the auditors and dissipating partnership assets. Also, he had terminated contracts for the clients