Mr. Richards, a wealthy and aspiring entrepreneur, is the owner of "Keep the Mrs. Happy!" a floral delivery service that specializes in delivering roses to disappointed wives whose husbands have somehow failed to live up to their wives' expectations. From a legal standpoint, "Keep the Mrs. Happy!" is a corporation formed under applicable state law, in which Mr. Richards is the sole shareholder, officer, and director. To accomplish its deliveries, "Keep the Mrs. Happy!" owns a fleet of five (5) mini-vans that are used by drivers on a daily basis to deliver bouquets of roses all over town. When the vans are not in use, however - in the evenings and on most weekends for example - Mr. Richards allows his five teenage daughters to use the vans at their leisure for purposes of their social and extra-curricular activities. These activities include cheerleading practices, volleyball and football games and other sporting events, trips to the local mall, and whatever other teenage activities his daughters and their friends might be involved in and/or wish to attend. Similarly, when school dances and Prom season come around, Mr. Richards allows his daughters and their friends free access to the corporation's inventory for purposes of making corsages, boutonnieres, and whatever other floral decorations the girls and their friends might desire. The vans are likewise made available for the girls and their dates to transport themselves to and from the dances themselves.

One fall, much to his daughters' dismay, Mr. Richards volunteers to chaperone the Homecoming Dance at the high school his five daughters attend. In what has become a regular sight, all five of the vans belonging to "Keep the Mrs. Happy!" arrive at the dance filled with Mr. Richards' daughters and their dates, along with countless numbers of their friends and their dates as well, each wearing flowers obtained free of charge courtesy of "Keep the Mrs. Happy!"

One of the other chaperones at the dance is Harold Bumptious, a local corporate attorney who specializes in corporate liability issues. During a quiet moment at the dance, Bumptious takes Mr. Richards aside and advises him that he might want to "think twice" about allowing his daughters such free and unfettered access to corporate property. When asked why, Bumptious tells Mr. Richards to call him "first thing on Monday morning" and he'll explain things in detail.

Is it wise for Mr. Richards to allow his daughters access to corporate property in the manner just described? Explain.

Answer rating: 100% (QA)

Answer Based on the provided description there are several legal and ethical considerations that arise regarding Mr Richards operation of Keep the Mrs ... View the full answer