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Question 1
Roger is 57 years old with a wife and three grown children who still live at home. To support himself and his family, Roger has been operating a small convenience store on a busy corner near his house for the past 30 years. He has never spent the time to bother formally organizing the store. One day, as a result of a negligently installed wire in the dairy case, one of Roger's customers is electrocuted and severely injured. The customer sues and obtains a judgment against Roger and the grocery store. Against whom is the customer entitled to collect?
Correct
Incorrect!
Correct
Incorrect!
Correct A sole proprietorship is not legally distinct from its owner. Therefore, an injured customer, or any claimant for that matter, would have the right to hold both the company and the individual liable. While it is possible that a state might limit the liability of a sole proprietor to protect his personal home from suit, no state has done so.
Incorrect! A sole proprietorship is not legally distinct from its owner. Therefore, an injured customer, or any claimant for that matter, would have the right to hold both the company and the individual liable. While it is possible that a state might limit the liability of a sole proprietor to protect his personal home from suit, no state has done so.