Business Law

Business Law

Essay1: Protections Regarding Legal Liability

The law provides extraordinary legal protections for certain business entities regarding legal liability. The benefits of offering legal protection from liability of the corporation and partnerships are likely to be the biggest benefit one can receive while incorporating their business. Liability protection can help businesses in two ways. It provides businesses the protection of their personal assets when their businesses are sued and also protection of the assets of businesses like cash, real estate and other assets when sued personally.

The separation of business assets into legal entities can afford you noteworthy legal protection. In order to get maximum protection, law requires that your legal entity is properly established. You are protected by legal statues when you incorporate your company. With the aid of provisions in law, you are protected from personal liability for business debts. These all benefits are mainly for the limited liability corporations for protection of personal assets from responsibility perspective of business. If corporations are structured and are operating properly, it is very difficult for the creditor to pierce the value of your assets of the corporation. In protection against personal obligations, there is no provision in law to use company stock for satisfying personal debts. In case of partnership, you have no legal protection from business obligations. Any debt or responsibility that partnership business has, the business owner has it personally.

Businesses enjoy a higher level of protection from lawsuits than ordinary citizens because limited liability companies are governed by state limited liability companies' statutes. These companies acquire resources from the public through shareholders, so in order to protect the legal status of shareholders; businesses generally enjoy a high level of protection against citizens. Companies are in a better position to defend themselves against lawsuits as compared to ordinary citizens because; companies have better protection due to incorporation as a legal entity.

The responsibility that companies owe to the public because of the legal protections is the shareholders liability. While incorporating company, shareholders powers are established under state's general corporation law which helps shareholders in the sense that if shareholders perceive that the corporate directors are not acting in the best interest of the corporation they can easily sue the directors with the help of shareholder's derivative suit (Cross & Miller, 2011).

Essay 2: Empowering Judges to Modify Troubled Mortgages

In beginning 2008, United States as well as many other countries analyzed a large number of foreclosures due to homeowners who had fallen behind on their mortgage payments and owed more money on their home than the quickly depreciating value of their residence.

The policy consequences of empowering judges with the ability to modify troubled mortgages is supported by President Obama's $75 billion foreclosure avoidance plan that would permit bankruptcy judges to alter home mortgages. This measured was held up by bankruptcy attorneys and other customer groups but was conflicted by the lenders. Although, it is a provision from President Obama's, The American Bankers Association squabbled that permitting such changes in the mortgage terms will augment ...