Doug is the owner of a chain of shoe stores. He hires Ray to be the manager
Question:
Doug is the owner of a chain of shoe stores. He hires Ray to be the manager of a new store, which is to open in Grand Rapids, Michigan. Doug, by written contract, agrees to pay Ray a monthly salary and 20 percent of the profits. Without Doug’s knowledge, Ray represents himself to Carl as Doug’s partner, showing Carl the agreement to share profits. Carl extends credit to Ray.
Ray defaults.
Discuss whether Carl can hold Doug liable as a partner.
Answer all questions given in the prompt, and address any other legal issues that arise from the scenario.
For example, if the scenario is about sexual harassment, you should discuss not only what the employer will do to prevent liability, but also what kinds of sexual harassment there are, how they arise, and what kind of sexual harassment has been demonstrated by the scenario.
South Western Federal Taxation 2015
ISBN: 9781305310810
38th edition
Authors: William H. Hoffman, William A. Raabe, David M. Maloney, James C. Young