Question: [ Dolly ' s Bakery ] Dolly decided to open her own bakery. She decided she did not need a lawyer to advise her on

[Dolly's Bakery] Dolly decided to open her own bakery. She decided she did not need a lawyer to advise her on different forms of ownership. Unfortunately, Dolly had not paid attention in business law class. She proceeded to simply open her business called Dolly's Bakery. Eli told Dolly that he wanted to order some cookies for his girlfriend, Kirsten, but that Kirsten had allergies to peanuts. Dolly told him not to worry because she would make up a special batch just for him. Dolly had hired some assistants because she was so busy. She told an assistant, Kate, to make up several patches of cookies for different customers including Eli and told her to leave out the peanuts in Eli's batch because of the allergy. Kate, however, forgot bout the peanut allergy and proceeded to make Eli's cookies with peanuts. Eli picked up the cookies and gave one to Kirsten in the car. Kirsten became iolently ill, vomited in Eli's car, and had to have her stomach pumped. Eli and firsten sought recovery from Dolly who told them that Kirsten's doctor bill nd Eli's car cleaning bill were business debts, that the business was new and ot making any money at the moment, and that she had no personal liability. ollowing the incident involving Eli and Kirsten, Dolly discussed her problems ith the bakery with her parents. Dolly's parents would like to invest in her usiness and share in any profits, but they do not want to share in the anagement responsibilities.
hich of the following is a true statement regarding Dolly's statement that e had no personal liability?
 [Dolly's Bakery] Dolly decided to open her own bakery. She decided

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!