Business law Essay Example | Topics and Well Written Essays - 250 words - 16

Business law - Essay Example What type of business organization has Alpha and Beta formed? To whom, if anyone, is Alpha liable? To whom, if anyone, is Beta liable? The business type formed by the two partnerships is a limited liability company which is not fully a partnership or a corporation. Since the two partnerships did not have any form of agreement as it was a onetime business deal, then each of the members has limited partnership. This type of business organization ensures the members have limited liability and especially on their personal property (Reuting 28). The limited liability however is not applicable where one of the members commits fraud or personally guarantees to repay a debt and later on refutes this claim. In case of personal business that are not linked to the company arises, then liability will be for only the member implicated and not for the rest of the members in the Limited Liability Company (the limited liability does not apply in such a case). Both Alpha and Beta committed fraud, however the frauds committed were different and hence the difference in liability. In the case of Alpha, the fraud was committed against a company that was to provide paper for printing the book that the two partnerships were producing and hence will be liable to both Beta and the printing paper company (Gamma Printing Supplies, Inc). Beta Publications which committed fraud against Delta Literary Agency which was producing articles for its magazine will be liable only to the agency alone and not to Alpha Communications as well. This is so because the agency does is not part of their one-time deal unlike the paper printing