Superb Motels Inc.

Paper Summary:

This paper addresses the legal options regarding the motel chain. The writer discusses that the chain has varying business registrations, some partnerships and some are corporate owned. The writer discusses how to avoid one member of the chain assuming losses or other liability for another and looks at central decisions and their implications. The writer also provides an argument in favour of individual registration/liability.

From the Paper:

"This case indicates the usefulness of all constituent motels of the Superb Motels Corp. being registered as limited liability operations within the corporation, or otherwise attached to it, in view of an uncertain hotel business that can vary greatly according to location, fluctuations in the economy, and the possibility of unexpected losses in individual member operations. If established as individual proprietor-ships, the Corporation reduces some of its risks due to the varying competence of manages of different motels in generating profit or guarding their operations from liability or other loss."

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