About allowing peterson to avoid liability on this basis

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Reference no: EM132185879

Our first case this week involves a sole proprietorship. Joe Peterson is the sole proprietor of Peterson Travel. Mike Larson contacted Peterson Travel to arrange a trip for him. Peterson never arranged trip; however, charges of over $1000 later showed up on Larson's credit card. Larson served both Peterson and Peterson Travel with copies of the complaint, summons, request for admissions, and other documents filed with the court. Peterson responded in his own name but no one responded on behalf of Peterson Travel.

Almost 4 months after Larson filed his complaint, Peterson decided that he was unable to adequately represent himself and retained an attorney who asked the court for more time. Should the court grant this request? Why or why not? Ultimately, what should the court rule in this case?

Peterson admitted that Peterson Travel, Inc. was a sole proprietorship. He also argued that liability might be imposed on his business but not on himself. How would you rule with respect to this argument? Why?

Would there be anything unethical about allowing Peterson to avoid liability on this basis? Why or why not?

Reference no: EM132185879

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