Question: 1 3 B . HYPOTHETICAL 1 . There s a start - up business entity that has 1 principal and 2 employees. 2 . The
B
HYPOTHETICAL
Theres a startup business entity that has principal and employees.
The business is sued by a customer for an injury the customer suffered while on the startups premises.
Neither the principal nor the employees were involved in the accident that caused the customers injury.
The case goes to trial.
The customer wins at trial and is awarded $ in damages.
QUESTION
Can the startups principal be held personally liable to pay damages to the customer?
Group of answer choices
Yes, if the startups total assets are less than the amount awarded in damages to the customer.
Yes, because businesses are held vicariously liable for the actions of their employees.
No if the principal was not personally involved in the accident that caused the customers injury than the principal cannot be held personally liable.
No because the principal is a general partner with limited liability.
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