Company to sell breakfast burritos in carts attached to bike

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Reference no: EM132229934

You have just inherited $100,000 and you want to go into business for yourself. You want to form a company to sell breakfast burritos in carts attached to bikes so they can whisk around town easier than a food truck. You want to invest $20,000, but you are concerned that if you invest in the business, all your personal assets (incuding the remaining $80,000) might be at risk, so you need to decide upon a business entity and set it up to best protect yourself. The tortilla supplier in New York agrees to sell you 1,000 tortillas in the 8-inch size because when you asked what size worked best for breakfast burritos, that's what they recommended. The price was $6,000 with delivery at your place of business in Denver. When they arrive, you notice they are 9 inches in size and too big for your needs so you ship them back only to find out the truck overturned on the way back, spilling them all over the road. The tortilla company is suing you for $76,000 (which includes the damage to the truck) in New York. You are worried you will lose all your savings in the bank. What should you do or should you have done? What legal issues are involved here?

Please demonstrate your understanding of the law.

Reference no: EM132229934

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