New Business Dilemmas Part II
When Devon purchased the storage facility, he obtained a mortgage from Regions Bank.
� Discuss the potential liability for Yard Tech and the homeowner for the dog bite. Explain the type of
insurance, if any, that Devon should maintain for Yard Tech. Be sure to establish a proper legal
foundation for your responses.
� Discuss the arguments each party (Myron, Yard Tech and Nguyen) will make related to liability in the
accident. Decide which party or parties should be liable and provide support for your choice.
NEW BUSINESS DILEMMAS PART II
� Which party is liable for the remaining rental payments? If the party liable for the debt does not pay
and Rudy obtains a judgment ordering payment from that party, what are Rudy�s options for seeking
payment?
� Explain Devon�s rights in the property, including responsibilities for taxes, payments and future sale
of the property. What are Devon�s rights if he defaults on the mortgage and the bank forecloses on the
property?
� Identify and explain any ethical concerns that Devon may encounter
NEW BUSINESS DILEMMAS PART II
New Business Dilemmas Part II
Question 1
The homeowner from where Manny got the dog bite owes specific duties to persons
entering her/his real property by invitation. Manny was on the property for a business operation
of mowing the yard. Therefore, it was the duty of the homeowner to discover any danger and
ensure safety or warn Manny of the dog in the cage. In most cases, the dog owners are
financially liable for any personal injury that their dog causes. A dog-bite statute law in Florida
holds the dog owner responsible for any injury that the dog inflicts irrespective of whether the
proprietor did not know it would hurt, was careful, or consistently tried to prevent the dog from
injuring someone (Ryskamp, 2015).
Therefore, the victim can sue the dog owner if he/she did not provoke the dog and was
acting peacefully in a public place or lawfully in a private place (Florida’s dog bite statute, Fla.
Stat. Ann. 767.04). The defendant or the insurance company will have to compensate for all the
damages resulting from the bite. For instance, a woman going door to door to take a survey was
allowed into a house, but unfortunately, a dog came through the front yard of the house, knocked
her, and bit her. The front yard was not fenced although there was a sign on the window reading,
“Trespassers will be eaten.” The court ruled that the woman entered the house with the
permission of the residents; therefore, she could sue the resident owner under the dog-bite statute
(Jones v. Manhart, 585 p. 2d 1250. Ariz.1978).
On the other hand, Yard Tech and Devon are legally obligated to ensure safety for their
employees. However, in a case of an accident or injury during work, workers compensation
NEW BUSINESS DILEMMAS PART II
insurance should provide coverage ensuring that the injured employee gets medical care and
compensation for the time and income lost while unable to report to work. Every employer
conducting work in the State of Florida must provide Worker’s Compensation Insurance for his
or her employees (Fla. Stat. Ann. 440.02). Therefore, Devon must maintain Worker’s
Compensation Insurance for Yard Tech.
Question 2
Employers are always liable for the negligent actions of their employees if an accident
occurs in the course of their employment. Hanh Nguyen may have sued Myron and Yard tech
based on the arguments holding them liable such as negligent hiring or retention, respondeat
superior and negligent maintenance of a vehicle. On the other hand, Yard Tech may argue that
Myron is liable for the accident because, at the time of the accident, he had taken a detour to stop
at a grocery store. In this situation, the respondeat superior principle does not apply. However,
several factors will influence which party is liable for the accident, for instance, the state in
which the accident occurred and the car policy. If the company insured the truck, then the
insurance company will pay for the damages.
In my opinion, Yard Tech should be liable for the accident because it occurred during the
work period. Myron was only driving home, which the company is aware of and the fact that he
stopped to buy groceries should not be treated as a personal errand. The accident might have
occurred due to the vehicles adverse conditions like a bad tire or poor maintenance, or the
employee might have been unfit to drive the vehicle. The employer is held responsible for these
factors under negligent hiring and negligent associated with the vehicle’s condition (Sackrin,
2015). Therefore, Devon should pay for all the damages and compensate Myron and the victim
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for the injuries. Under the common law of Florida, “an employer is liable for damages for the
wrongful act of his workers that causes harm to a third party” (Weiss v. Jacobson, 62 So. 2d 904
(Fla. 1953).
Question 3
If Rey files a discrimination lawsuit against Yard Tech, she will succeed because Yard
Tech considers himself an equal opportunity employer yet practices sexual discrimination. The
Title VII, The Equal Pay Act, The Age Discrimination in Employment Act among other related
equal employment laws protect the victim from any form of employment discrimination by an
employer. The Federal and State laws of Florida protect sexual discrimination in employment
processes. For instance, the 2016 Florida Statutes states, “It is unlawful employment practice to
refuse or fail to hire any individual due to the individual’s sex or to discriminate against any
person in any program, employment, training, or apprenticeship.” It is also unlawful “to deprive
in any way an individual of employment opportunities” (Fla Stat. Sec. 760.01- 760.10).
However, specific jobs may require employers to hire individuals based on sex or
religion; for instance, a women’s lingerie shop may only employ females. This is referred to as
bona fide occupational qualification (Mallory & Sears, 2015). In the situation of Rey, Yard Tech
refused to offer her a job because she is a lesbian. Such acts are punishable by the Federal and
State laws. So yes, Rey will succeed if she files a discrimination lawsuit.
Question 4
Taking Brutus to a doggie daycare means that the bailee might have accepted a fee for
holding possession and taking care of the pet. This situation is called a consideration type of
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bailment. For “consideration,” the bailee must ensure to provide a higher standard of care
compared to a bailee who is providing care without pay, and in such a situation, if anything
happens to the pet, the bailee has to pay for the damages.
If the doggie daycare accepted the responsibility of taking care of Brutus voluntarily, the
bailee must ensure safety and proper care of the pet for the bailor to reclaim within an agreed
time. Similarly, if Devon left Brutus for an indefinite term, then the bailee had an obligation to
take care of it until he takes it back and the bailor can sue the bailee for any damage or harm on
the pet during this period. According to Devon’s case, it is not clear on what terms or principles
he left Brutus with the doggie daycare; hence it is difficult to determine whether he would
recover the damages for Brutus’ death.
However, the fact that he signed and completed some authorization forms shows that the
bailee voluntarily or considerably accepted the responsibility. Therefore, there are chances that
Devon could recover damages from doggie daycare for the death of his pet. The State law
imposes duties upon a bailee, and in the case of any breach of those duties, the bailee is deemed
liable, and the bailor can recover damages for negligence or bailment (Delott, 2016).
Question 5
In this case, Devon is liable for the remaining rental payment because he leased out the
storage to another party without informing the Rudy. Rudy did not know about Girish, and apart
from breaching the agreement with Rudy, Devon went ahead to lease someone’s property
without his consent. Therefore, Devon should pay the remaining rent for Rudy’s storage unit.
NEW BUSINESS DILEMMAS PART II
If he does not pay and Rudy obtains a judgment ordering payment from that the liable
party, Rudy’s options include first, he should serve Devon with a written notice providing him
three days to pay the unpaid amount and state the action he would take if the tenant does not pay
by that time. Secondly, if the responsible party does not pay by the required time, Ruby may use
his security money to pay the unpaid rent, and if it is not enough, he can finally sue the tenant to
cover the unpaid rent (Garcia, 2016).
Question 6
When a person purchases a fixture (in this case a building affixed to land), the buyer
acquires full ownership of the property. Therefore, he has all the rights relating to it such as the
right to sell it or give it away, and rights to rent it. He also remains responsible for estate taxes,
insurance, and maintenance costs of the property. Devon will similarly have these rights and
responsibilities upon entirely purchasing the property.
If he default on the mortgage and the bank foreclose on the property, Devon has a right to
redeem the property by paying off the full amount of the unpaid loan together with particular
additional payments after the foreclosure sale. However, Devon will only be able to redeem the
property before the court clerk files the certificate of sale (Fla. Stat. Ann. 54.0315).
Question 7: Ethical Issues
One of the ethical issues that Devon may encounter is hiring a driver who is unfit to drive
the company’s vehicle. He should take note that only licensed drivers should drive company
vehicles. The employer has the responsibility to identify any criminal history or unethical acts
NEW BUSINESS DILEMMAS PART II
associated with driving that may cause future accidents, failure to which the employer will be
liable for any damages done by the driver in a company’s vehicle.
He may also refuse to give up possession of a property at the end the tenant’s lease. This
practice provides the landlord or attorney to demand double monthly rent at the end of every
month. Devon should also ensure to fulfill every agreement signed such as contracts, to avoid
penalties associated with violation of contracts.
Question 8: Conclusion
Devon can prevent future occurrences of these types of legal and ethical problems if one,
he provides Worker’s Compensation Insurance for his or her employees (Fla. Stat. Ann. 440.02).
This kind of insurance would enable coverage for any injury or damage of an employee during
work. It also prevents Devon from running at a loss in his businesses.
Secondly, he should ensure to hire licensed drivers and ensure all the company vehicles
are in safe conditions at all times. Just as in the case of Weiss v. Jacobson, 62 So. 2d 904 Fla.
1953, the law states that an employer is responsible for any harm or damage caused by his or her
employee. Therefore, Devon should take measures to avoid such penalties. He should also put in
place policies that restrict his employees from wrongdoings causing injuries to a third party.
In addition, he should learn to read and understand every form before signing any
agreement. He should seek clarification about the consequences of either party breaching an
agreement. For instance, he did not read the form provided at the doggie daycare, which made it
difficult for him to determine whether he could recover damages or not. As a pet owner, he
should understand that he might be absolving pet bailee from legal responsibility when signing
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forms and should be aware of the bailee’s right to keep the pet under the Lien Law (Delott,
2016).
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References
Delott, J. (2016). The bailees in your pet’s life. Member Resource Library. R
Fla Stat. Sec. 760.01- 760.10
Fla. Stat. Ann. 440.02
Fla. Stat. Ann. 54.0315
Fla. Stat. Ann. 767.04
Garcia, R. (2016). Florida landlord rights when a tenant refuses to pay. RayGraciaLaw.
Mallory, C. & Sears, B. (2015). Employment discrimination based on sexual orientation and
gender identity in Florida. The Williams Institute.
