Asked by Kristin Kowing on May 27, 2024
Verified
Business Media, a partnership, publishes periodicals, including Cycle Review . DangerZoners, also a partnership, publishes Extreme Sports . Business Media and DangerZoners agree to pool their resources in a one-time deal to print and market a book, Future Runs . In contracting with Geo Cache, Inc., for supplies to print the book, Business Media commits fraud. In contracting with Host Articles Agency for materials to use in Extreme Sports , DangerZoners commits fraud. Geo Cache and Host Articles file suits against Business Media and DangerZoners. What type of business organization has Business Media and DangerZoners formed? To whom, if anyone, is Business Media liable? To whom, if anyone, is DangerZoners liable?
Contracts Fraud
Contracts fraud involves the intentional deception or misrepresentation made by a party in a contract to gain a financial advantage or to harm the other party, often relating to the falsification or concealment of information.
Business Organization
The structure and framework within which an enterprise operates, detailing the roles, relationships, and responsibilities of its entities.
Pool Their Resources
To combine assets, funds, or talents of a group of people for a common purpose or to achieve a common goal.
- Comprehend the legal liabilities and organizational structures in complex business partnerships and agreements.
- Understand the implications of fraud and legal responsibility between partnering businesses in undertakings like publishing and marketing.
Verified Answer
A joint venture is an association of two or more business entities that combine their efforts or property for a single transaction or a series of related transactions or projects. This is what Business Media and DangerZoners did: they combined efforts to undertake a single project, the publishing of the book Future Runs .
Each joint venturer is liable to a third party for the actions of the other members of the joint venture in pursuit of the enterprise's common goal. Each member is not liable to a third party for the actions of other members pursuing their own separate interests. In this question, Business Media and DangerZoners are each liable for Business Media's fraud to Geo Cache, because it was committed in pursuit of their common enterprise. Only DangerZoners is liable for DangerZoners's fraud to Host Articles, however, because the fraud was committed in pursuit of DangerZoners's interest only.
Learning Objectives
- Comprehend the legal liabilities and organizational structures in complex business partnerships and agreements.
- Understand the implications of fraud and legal responsibility between partnering businesses in undertakings like publishing and marketing.
Related questions
The Document That Legally Establishes Domicile for a Corporation Is ...
If a Plaintiff Seeks to Recover Damages Allegedly Caused by ...
Which of the Following Is Not Among the Rights of ...
Brian Is the Sole Proprietor of Long Voyage Software,which Generates ...
Suppose You Form a Legal Partnership with Your Best Friend,and ...