Read the information and the questions that follow. Identify the legal issue(s) and apply legal concepts and possible arguments for each question, using laws, cases, examples, and other relevant scholarly materials. Identify potential ethical issues. Finally, provide suggestions to help the company prevent future occurrences of the legal and ethical issues encountered. Support your answers with information from the textbook and at least two outside scholarly sources. By Tuesday, August 11, 2015 , prepare a 5 to 8 page paper that identifies the legal issues and potential solutions and answers all questions presented, supported by relevant legal authority. Properly cite all sources using APA format. This assignment requires application of the concepts learned in Weeks 1–5 and is worth significantly more than previous assignments. Scenario In Part I of the assignment, Chuck House and Ben Holmes created a business they called House & Holmes Facilities Management.  At the time, Chuck and Ben were the only employees.  By the end of the second year, House & Holmes hired two additional full-time employees and paid a few temporary laborers as needed for certain maintenance jobs. Chuck and one of the temporary laborers, Steve, were carrying an old cast iron bathtub through a customer’s house when the homeowner’s dog ran under Steve’s feet, causing him to lose his balance and drop his end of the tub.  Unable to control the tub, Steve dropped his end of the tub causing it to knock over a flat screen television that shattered on the floor.  The tub left scratches in the wood floors.  Steve tore his rotator cuff in the fall and was unable to work for two months.   Ryan, the customer, was upset about his television. House & Holmes owns three trucks and one van, each registered to the business.  The vehicles advertise the company’s name, phone number and website.  Jason, one of the full-time employees, drives one of the trucks home at night when he is on call for emergency repairs. One night Jason stopped off at Hillside Tavern to have a couple of beers before going home. On the way home, Jason swerved to avoid hitting a deer and hit a car  driven by Charmaine Wilson.  Charmaine’s car sustained $4,500 in damages and she missed three days of work recovering from her injuries.   Regions Bank loaned $20,000 to House & Holmes.  Chuck, Ben and their friend Phil agreed to be co-sureties for the loan.  The handyman business defaulted on the loan and Regions Bank plans to sue Phil for payment of the loan. House & Holmes agreed to install a new air conditioning  unit and an outdoor kitchen in a luxury home on the beach.  The parties agreed to a price of $9,500 for the purchase and installation of the air conditioning unit and outdoor kitchen.  Chuck agreed to let the homeowner pay for the work in installments of $2000 a month.  Two months later, the homeowner filed for bankruptcy.  Chuck demanded payment of the remaining amount due or threatened to repos.

1. Read the information and the questions that follow. Identify the
legal issue(s) and apply legal concepts and possible arguments
for each question, using laws, cases, examples, and other
relevant scholarly materials. Identify potential ethical issues.
Finally, provide suggestions to help the company prevent future
occurrences of the legal and ethical issues encountered. Support
your answers with information from the textbook and at least
two outside scholarly sources. By
Tuesday, August 11, 2015
,
prepare a 5 to 8 page paper that identifies the legal issues and
potential solutions and answers all questions presented,
supported by relevant legal authority. Properly cite all sources
using APA format.
This assignment requires application of the concepts learned in
Weeks 1–5 and is worth significantly more than previous
assignments.
Scenario
In Part I of the assignment, Chuck House and Ben Holmes
created a business they called House & Holmes Facilities
Management. At the time, Chuck and Ben were the only
employees. By the end of the second year, House & Holmes
hired two additional full-time employees and paid a few
temporary laborers as needed for certain maintenance jobs.
Chuck and one of the temporary laborers, Steve, were carrying
an old cast iron bathtub through a customer’s house when the
homeowner’s dog ran under Steve’s feet, causing him to lose his
balance and drop his end of the tub. Unable to control the tub,
Steve dropped his end of the tub causing it to knock over a flat
screen television that shattered on the floor. The tub left
scratches in the wood floors. Steve tore his rotator cuff in the
fall and was unable to work for two months. Ryan, the
customer, was upset about his television.

2. House & Holmes owns three trucks and one van, each
registered to the business. The vehicles advertise the
company’s name, phone number and website. Jason, one of the
full-time employees, drives one of the trucks home at night
when he is on call for emergency repairs. One night Jason
stopped off at Hillside Tavern to have a couple of beers before
going home. On the way home, Jason swerved to avoid hitting a
deer and hit a car driven by Charmaine Wilson. Charmaine’s
car sustained $4,500 in damages and she missed three days of
work recovering from her injuries.
Regions Bank loaned $20,000 to House & Holmes. Chuck, Ben
and their friend Phil agreed to be co-sureties for the loan. The
handyman business defaulted on the loan and Regions Bank
plans to sue Phil for payment of the loan.
House & Holmes agreed to install a new air conditioning unit
and an outdoor kitchen in a luxury home on the beach. The
parties agreed to a price of $9,500 for the purchase and
installation of the air conditioning unit and outdoor kitchen.
Chuck agreed to let the homeowner pay for the work in
installments of $2000 a month. Two months later, the
homeowner filed for bankruptcy. Chuck demanded payment of
the remaining amount due or threatened to repossess the outdoor
kitchen appliances. The customer could keep the air
conditioning unit since the previous payments covered the cost.
Gabriella Garcia was born in Mexico in 1985 and recently
became a U.S. citizen. Gabriella speaks fluent English with a
strong Hispanic accent. Gabriella’s accent does not interfere
with her ability to communicate with others. Gabriella applied
for a job with House & Holmes; however, she was not hired for
the position.
Assignment

3. Based on the different situations described in the scenario,
create a 5 to 8 page Microsoft Word document that includes the
answers to the following:
Is the business selected in Week 3 still the best type of
organization for Chuck and Ben? If yes, provide reasons for
your selection. If no, then select the appropriate type of
business organization and provide support for your selection.
Explain the liability of the homeowner, Chuck, and Steve for
the incident with the tub and the types of insurance the parties
should have. Determine Steve’s options for seeking
compensation for his injuries. Consider both the damage to the
Ryan’s property and Steve’s injuries.
Explain which party is liable for Charmaine’s injuries. Assume
each party maintains insurance coverage on his/her vehicle.
Which insurance company will be liable for payment of
Charmaine’s claims? Remember the business is located in
Florida.
Is Regions Bank required to seek payment from the House &
Holmes before demanding payment from the co-sureties?
Can the bank collect the full amount of the loan from Phil? If
Phil pays the loan, does he have a right to contribution from
Chuck and Ben? If so, how much can Phil recover from Chuck
and Ben?
What are the rights of each party to the air conditioning units,
outdoor kitchen appliances and payments owed when the
homeowner files bankruptcy?
On what grounds might Gabriella have a discrimination lawsuit
against House & Holmes? Provide support for each ground
selected and then provide arguments that the House & Holmes
may make to counter each claim.
Explain any ethical concerns House & Holmes may face related
to the topics covered.
Conclude your paper by providing suggestions for House &
Holmes to help prevent future occurrences of these types of
legal and ethical problems.
Support your answers with appropriate research, reasoning,

4. cases, laws, and other relevant examples.
Submit the paper in APA format and properly cite sources on a
separate page using APA.