Danielle decides she is going to open a bakery. She talks to Sarah and Staci about going into business with her. They agree. They find the perfect space to rent and start their business, Three Girls Bakery. About a year later the three of them decide to have a meeting to discuss the business. Danielle does not agree with the direction that Sarah and Staci want the business to go in. She gets upset and starts to walk out of the meeting. Im the one who wanted to open this bakery to begin with! she shouts. Now you guys want to start using lower quality ingredients so you can put more money in your pockets?!!! she yells. Danielle stomps towards the front door, "I guess I'm out voted so go ahead and order the crappy ingredients!" she yells as she walks out and slams the door.

About a month later, Dorothy, an 85 year old woman, is enjoying a muffin and coffee at a table in their bakery. "I don't feel good," she says. "My stomach really hurts." A few minutes later she throws up and falls to the floor holding her stomach. Danielle runs over to her. She is unconscious. Danielle calls 911. Later Danielle finds out that she had E. coli food poisoning that they are linking to the muffin she ate at their bakery.

Three Girls Bakery is now being sued by Dorothy's attorney. She is asking for $1.2 Million in damages. The attorney serves Danielle, Staci, and Sarah with a subpoena to appear in court to disclose all their business assets and personal assets. "Personal assets?!! What?!!" Staci says frantically. "They can't take my home can they? What about my car? And my savings account? What's going on?!!!" Staci says as tears run down her cheeks.

Please state:

What should Danielle, Sarah, and Staci have done when forming their business that would have prevented Dorothy from trying to get their personal assets?

What should Danielle have done when forming the business to make sure she could have left the business when she didn't agree with Sarah and Staci's business decisions?

(Please use the IRAC Law Method)