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Legal liability plays a huge role

This essay focuses on Legal liability plays a huge role.in student affairs decision making and institutional change. Explain the type of impact that legal liability imposes upon post-secondary institutions.

 

Legal liability plays a huge role

in student affairs decision making and institutional change. Explain the type of impact that legal liability imposes upon post-secondary institutions.

As you analyze and compose your replies to your peers, how do you determine the type and extent of liability that an institution may encounter? And how does that determination inform institutional change?

Link to my book:   A Legal Guide for Student Affairs Professionals, Chapter 2

In commercial law, limited liability is a method of protection included in some business formations that shields its

owners from certain types of liability and that amount a given owner will be liable for.

A limited liability form separates the owner(s) from the business. This means that when a business is find liable in a case, the owners are not themselves liable; rather, the business is. Thus, only the funds or property the owner(s) have invested into the business are subject to that liability. If, for example, a limited liability business goes bankrupt, then the owner(s) will not lose unrelated assets, such as a personal residence (assuming they do not give personal guarantees).[2] Forms of businesses that offer the limited liability protection include limited liability partnerships, limited liability companies, and corporations. Sole proprietorships and partnerships do not include limited liability.

This is the standard model for larger businesses

, in which a shareholders will only lose the amount invested (in the form of stock value decreasing). For an explanation, see business entity.

There is an exception to this rule, however, which allows a claimant to litigate against the owner(s) of a limited liability business, if the owner(s) have engaged in conduct that justifies the claimant’s recovery from the owner(s): This exception is called “piercing the corporate veil.” Courts generally try not to utilize this exception unless there have been serious transgressions. Limited liability aids entrepreneurs, businesses, and the economy in growing and innovating. Therefore, if courts often chose to pierce the veil, that innovation would be restrict. The exact test a court will use to determine if the veil needs to pierced vary by state in the United States, but generally courts will look to see if there is a separation between the company’s and its owners’ affairs, the company’s actions were fraudulent, and if the company’s creditors were subject to an unjust cost

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