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What triggers the managerial responsibility for debts in the case of legal dissolution?
What triggers the managerial responsibility for debts in the case of legal dissolution?
How does universal patrimonial responsibility affect a debtor's obligations?
How does universal patrimonial responsibility affect a debtor's obligations?
In a mercantile company, what happens to the responsibility of partners and managers upon the extinction of the company's responsibility?
In a mercantile company, what happens to the responsibility of partners and managers upon the extinction of the company's responsibility?
What is the primary benefit of the indirect techniques allowed in Spanish law for limiting responsibility?
What is the primary benefit of the indirect techniques allowed in Spanish law for limiting responsibility?
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What role does an entrepreneur's spouse play in limiting industrial, commercial, or service activities?
What role does an entrepreneur's spouse play in limiting industrial, commercial, or service activities?
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Which statement best describes mutualist-based companies in terms of debt responsibility?
Which statement best describes mutualist-based companies in terms of debt responsibility?
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What does the extinction of an obligation in the context of universal patrimonial responsibility mean?
What does the extinction of an obligation in the context of universal patrimonial responsibility mean?
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Which aspect best differentiates the liability of individual entrepreneurs from that of partners in collective entities?
Which aspect best differentiates the liability of individual entrepreneurs from that of partners in collective entities?
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What principle applies to the entrepreneur's extra-contractual responsibility for damages?
What principle applies to the entrepreneur's extra-contractual responsibility for damages?
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In the context of increasing business activities, what principle has emerged regarding compensation for damages?
In the context of increasing business activities, what principle has emerged regarding compensation for damages?
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What must an entrepreneur demonstrate to disprove attribution of extra-contractual civil responsibility?
What must an entrepreneur demonstrate to disprove attribution of extra-contractual civil responsibility?
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Which statement is true regarding the liability of an entrepreneur for the acts of their dependents?
Which statement is true regarding the liability of an entrepreneur for the acts of their dependents?
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What distinguishes individual liability from collective liability in the context of an entrepreneur's responsibilities?
What distinguishes individual liability from collective liability in the context of an entrepreneur's responsibilities?
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What does the concept of 'risk theory' imply in the context of extra-contractual liability?
What does the concept of 'risk theory' imply in the context of extra-contractual liability?
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Which example illustrates the objective responsibility established by law for entrepreneurs?
Which example illustrates the objective responsibility established by law for entrepreneurs?
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Why is it insufficient for an entrepreneur to merely demonstrate compliance with regulations to mitigate liability?
Why is it insufficient for an entrepreneur to merely demonstrate compliance with regulations to mitigate liability?
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Which asset is specifically excluded from universal patrimonial responsibility?
Which asset is specifically excluded from universal patrimonial responsibility?
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What must an entrepreneur do to ensure the limitation of liability is effective?
What must an entrepreneur do to ensure the limitation of liability is effective?
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In the case of debts contracted before gaining the limitation of liability benefit, what is the status of patrimonial responsibility?
In the case of debts contracted before gaining the limitation of liability benefit, what is the status of patrimonial responsibility?
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If an entrepreneur experiences the voluntary transfer of ownership of their habitual residence, what happens to the limitation benefit?
If an entrepreneur experiences the voluntary transfer of ownership of their habitual residence, what happens to the limitation benefit?
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What is required of an entrepreneur regarding annual accounts if they have the limitation of responsibility?
What is required of an entrepreneur regarding annual accounts if they have the limitation of responsibility?
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What is the limit value for a habitual residence to be excluded from universal patrimonial responsibility in populous areas?
What is the limit value for a habitual residence to be excluded from universal patrimonial responsibility in populous areas?
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Which of the following describes the responsibility of both individual and corporate entrepreneurs in business activity?
Which of the following describes the responsibility of both individual and corporate entrepreneurs in business activity?
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What is the consequence of failing to deposit annual accounts in the Mercantile Register for an entrepreneur with limited liability?
What is the consequence of failing to deposit annual accounts in the Mercantile Register for an entrepreneur with limited liability?
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What legal principle allows creditors to hold the authentic entrepreneur responsible for the debts of a hidden entrepreneur?
What legal principle allows creditors to hold the authentic entrepreneur responsible for the debts of a hidden entrepreneur?
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Which type of company requires collective partners to respond for the company's debts?
Which type of company requires collective partners to respond for the company's debts?
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What is the primary responsibility of an entrepreneur regarding their obligations?
What is the primary responsibility of an entrepreneur regarding their obligations?
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In what type of partnership do only collective partners respond for company debts?
In what type of partnership do only collective partners respond for company debts?
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Which of the following entities has a different liability structure from individual entrepreneurs?
Which of the following entities has a different liability structure from individual entrepreneurs?
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What limits an individual entrepreneur's ability to set up a separate patrimony?
What limits an individual entrepreneur's ability to set up a separate patrimony?
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Which factor is crucial for determining the responsibility structure of a mercantile company?
Which factor is crucial for determining the responsibility structure of a mercantile company?
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What does the principle of universal patrimonial responsibility imply for entrepreneurs?
What does the principle of universal patrimonial responsibility imply for entrepreneurs?
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What type of assets respond to the obligations contracted by a married entrepreneur when the opposition is included in a public deed?
What type of assets respond to the obligations contracted by a married entrepreneur when the opposition is included in a public deed?
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Which of the following can establish a sole proprietorship public limited company or limited liability company?
Which of the following can establish a sole proprietorship public limited company or limited liability company?
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What is the nature of the legal responsibility of a sole shareholder in a sole proprietorship?
What is the nature of the legal responsibility of a sole shareholder in a sole proprietorship?
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How many sole proprietorship companies may a single person set up in Spain?
How many sole proprietorship companies may a single person set up in Spain?
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What happens when a public limited company is converted into a sole proprietorship?
What happens when a public limited company is converted into a sole proprietorship?
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What is required when a person already has sole shareholder status in a new company?
What is required when a person already has sole shareholder status in a new company?
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Which statement accurately reflects the nature of the corporate form in terms of liability?
Which statement accurately reflects the nature of the corporate form in terms of liability?
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What type of asset is explicitly excluded from universal patrimonial responsibility?
What type of asset is explicitly excluded from universal patrimonial responsibility?
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What is the main condition for an asset to be excluded from universal patrimonial responsibility?
What is the main condition for an asset to be excluded from universal patrimonial responsibility?
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What happens to the limitation of liability benefit if an entrepreneur transfers ownership of their habitual residence?
What happens to the limitation of liability benefit if an entrepreneur transfers ownership of their habitual residence?
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Which of the following is required for the entrepreneur to achieve the limitation of liability benefit?
Which of the following is required for the entrepreneur to achieve the limitation of liability benefit?
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What is the impact of debts contracted before obtaining the limitation of liability benefit?
What is the impact of debts contracted before obtaining the limitation of liability benefit?
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What is the correction coefficient applied to the value of habitual residence in populations exceeding one million inhabitants?
What is the correction coefficient applied to the value of habitual residence in populations exceeding one million inhabitants?
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What is required for the limitation of liability benefit to operate effectively for future debts?
What is required for the limitation of liability benefit to operate effectively for future debts?
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What duty does the law impose on entrepreneurs with a limitation of responsibility?
What duty does the law impose on entrepreneurs with a limitation of responsibility?
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Which statement accurately describes the effect of a mortgage on a habitual residence in the context of limitation of liability?
Which statement accurately describes the effect of a mortgage on a habitual residence in the context of limitation of liability?
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What must an entrepreneur do to be relieved from extra-contractual liability for damage caused by their dependents?
What must an entrepreneur do to be relieved from extra-contractual liability for damage caused by their dependents?
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What overarching principle underlies the entrepreneur's extra-contractual liability?
What overarching principle underlies the entrepreneur's extra-contractual liability?
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In cases where damages occur, what is generally insufficient in proving that an entrepreneur is not liable?
In cases where damages occur, what is generally insufficient in proving that an entrepreneur is not liable?
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What legal approach may judges take to determine liability in dangerous business activities?
What legal approach may judges take to determine liability in dangerous business activities?
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What do the terms 'cuius est comodum eius est periculum' imply in business liability contexts?
What do the terms 'cuius est comodum eius est periculum' imply in business liability contexts?
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For which of the following scenarios is an entrepreneur strictly liable according to established laws?
For which of the following scenarios is an entrepreneur strictly liable according to established laws?
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Which of the following best summarizes the concept of 'risk theory'?
Which of the following best summarizes the concept of 'risk theory'?
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What constitutes the basis for the quasi-objective solutions in extra-contractual responsibilities?
What constitutes the basis for the quasi-objective solutions in extra-contractual responsibilities?
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What establishes the entrepreneur's direct responsibility regarding the acts of their dependents?
What establishes the entrepreneur's direct responsibility regarding the acts of their dependents?
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In what situation can an injured party pursue legal action against both the entrepreneur and the dependent?
In what situation can an injured party pursue legal action against both the entrepreneur and the dependent?
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What is the level of personal liability for a sole shareholder in a limited liability company if the company acquires the character of sole proprietorship without registration?
What is the level of personal liability for a sole shareholder in a limited liability company if the company acquires the character of sole proprietorship without registration?
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How does Spanish case law characterize the liability of an entrepreneur concerning dependents?
How does Spanish case law characterize the liability of an entrepreneur concerning dependents?
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What enables investment companies to manage risks associated with their assets?
What enables investment companies to manage risks associated with their assets?
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What characteristic is essential for the investment companies mentioned in the content?
What characteristic is essential for the investment companies mentioned in the content?
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Which of the following statements is true regarding the relationship between entrepreneurs and their dependents?
Which of the following statements is true regarding the relationship between entrepreneurs and their dependents?
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Which statement accurately represents the dual limitation placed on entrepreneurs under Law 14/2013?
Which statement accurately represents the dual limitation placed on entrepreneurs under Law 14/2013?
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What happens when an entrepreneur compensates for damages caused by their dependents?
What happens when an entrepreneur compensates for damages caused by their dependents?
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What happens to the responsibilities of a compartment within an investment company?
What happens to the responsibilities of a compartment within an investment company?
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Which of the following is NOT a characteristic of the investment companies discussed?
Which of the following is NOT a characteristic of the investment companies discussed?
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What is the consequence of a sole shareholder failing to register the shift to sole proprietorship within six months?
What is the consequence of a sole shareholder failing to register the shift to sole proprietorship within six months?
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In the context of limited liability, what is a fundamental right introduced by Law 14/2013 for entrepreneurs?
In the context of limited liability, what is a fundamental right introduced by Law 14/2013 for entrepreneurs?
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How does the principle of universal patrimonial responsibility affect the assets of an entrepreneur?
How does the principle of universal patrimonial responsibility affect the assets of an entrepreneur?
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In a limited partnership, who is responsible for the company's debts?
In a limited partnership, who is responsible for the company's debts?
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What is a defining characteristic of collective companies with regard to debt responsibility?
What is a defining characteristic of collective companies with regard to debt responsibility?
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What legal concept allows creditors to hold both the apparent and hidden entrepreneur accountable for debts?
What legal concept allows creditors to hold both the apparent and hidden entrepreneur accountable for debts?
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Which of the following correctly identifies a limitation of individual entrepreneurs' liability?
Which of the following correctly identifies a limitation of individual entrepreneurs' liability?
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Which type of company provides absolute autonomy of partners' assets regarding liability?
Which type of company provides absolute autonomy of partners' assets regarding liability?
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What is a key element that distinguishes individual entrepreneurs from legal entities in terms of liability?
What is a key element that distinguishes individual entrepreneurs from legal entities in terms of liability?
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What must entrepreneurs prove to mitigate their extra-contractual civil responsibility?
What must entrepreneurs prove to mitigate their extra-contractual civil responsibility?
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What is the effect on managers' responsibilities when a legal dissolution cause exists?
What is the effect on managers' responsibilities when a legal dissolution cause exists?
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Which situation does NOT contribute to the universal patrimonial responsibility of a debtor?
Which situation does NOT contribute to the universal patrimonial responsibility of a debtor?
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In the context of mercantile companies, when does the partners' and managers' liability end?
In the context of mercantile companies, when does the partners' and managers' liability end?
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What is a limitation mechanism available to individual entrepreneurs under Spanish law?
What is a limitation mechanism available to individual entrepreneurs under Spanish law?
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What condition leads to the termination of universal patrimonial responsibility for an entrepreneur?
What condition leads to the termination of universal patrimonial responsibility for an entrepreneur?
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Which of the following statements is true regarding cooperative company partners?
Which of the following statements is true regarding cooperative company partners?
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What type of assets respond to the obligations contracted by a married entrepreneur when registered opposition is included in a public deed?
What type of assets respond to the obligations contracted by a married entrepreneur when registered opposition is included in a public deed?
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What is one consequence of failing to fulfill the obligations of a debtor-entrepreneur?
What is one consequence of failing to fulfill the obligations of a debtor-entrepreneur?
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What must be executed to ensure effective limitation of an entrepreneur's liability?
What must be executed to ensure effective limitation of an entrepreneur's liability?
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Which statement is true regarding the formation of a sole proprietorship public limited company?
Which statement is true regarding the formation of a sole proprietorship public limited company?
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What must a sole shareholder do if they wish to establish a new sole proprietorship company?
What must a sole shareholder do if they wish to establish a new sole proprietorship company?
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What is the main benefit of establishing a sole proprietorship company?
What is the main benefit of establishing a sole proprietorship company?
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In the context of personal obligations, who is responsible for fulfilling the obligations of a sole shareholder?
In the context of personal obligations, who is responsible for fulfilling the obligations of a sole shareholder?
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Which of the following correctly describes the limitation of liability benefit?
Which of the following correctly describes the limitation of liability benefit?
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What happens to the liability for debts contracted before gaining the limitation of liability benefit?
What happens to the liability for debts contracted before gaining the limitation of liability benefit?
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Which of the following accurately reflects the responsibilities in a joint estate when a married entrepreneur operates a business?
Which of the following accurately reflects the responsibilities in a joint estate when a married entrepreneur operates a business?
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Under what condition does the sole shareholder of a company become personally responsible for the company's debts?
Under what condition does the sole shareholder of a company become personally responsible for the company's debts?
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What is the primary purpose of investment companies as defined in the content?
What is the primary purpose of investment companies as defined in the content?
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What does the concept of 'compartments' within investment companies imply?
What does the concept of 'compartments' within investment companies imply?
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How does Law 14/2013 affect the liability of entrepreneurs?
How does Law 14/2013 affect the liability of entrepreneurs?
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What is the significance of having separate assets in a mercantile company?
What is the significance of having separate assets in a mercantile company?
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What must an entrepreneur establish to ensure the limitation of liability is effective?
What must an entrepreneur establish to ensure the limitation of liability is effective?
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What happens to the limitation of liability benefit if an entrepreneur sells their habitual residence?
What happens to the limitation of liability benefit if an entrepreneur sells their habitual residence?
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What limits the personal liability of an individual entrepreneur?
What limits the personal liability of an individual entrepreneur?
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What is the nature of the entrepreneur's responsibility for acts caused by dependents?
What is the nature of the entrepreneur's responsibility for acts caused by dependents?
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Under what circumstances can an injured party pursue an entrepreneur for damages?
Under what circumstances can an injured party pursue an entrepreneur for damages?
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How is the burden of proof established in cases involving entrepreneur responsibility?
How is the burden of proof established in cases involving entrepreneur responsibility?
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What does Spanish case law assume about the dependent's actions in relation to the entrepreneur's liability?
What does Spanish case law assume about the dependent's actions in relation to the entrepreneur's liability?
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What recourse does an entrepreneur have after compensating for damages caused by a dependent?
What recourse does an entrepreneur have after compensating for damages caused by a dependent?
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What is the consequence for an entrepreneur in case of attributable non-fulfillment of contractual obligations?
What is the consequence for an entrepreneur in case of attributable non-fulfillment of contractual obligations?
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In mercantile contracts with a fixed fulfillment date, when do the effects of default begin?
In mercantile contracts with a fixed fulfillment date, when do the effects of default begin?
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What is the maximum payment term that can be agreed upon in commercial operations between entrepreneurs?
What is the maximum payment term that can be agreed upon in commercial operations between entrepreneurs?
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What type of interest must a debtor pay if there is no prior agreement on default interest?
What type of interest must a debtor pay if there is no prior agreement on default interest?
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If non-fulfillment is due to unforeseen circumstances, what is the entrepreneur's obligation?
If non-fulfillment is due to unforeseen circumstances, what is the entrepreneur's obligation?
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What is the creditor entitled to claim if default in payment is due to the debtor's fault?
What is the creditor entitled to claim if default in payment is due to the debtor's fault?
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How does negligence affect the calculation of damages in case of non-fulfillment by the entrepreneur?
How does negligence affect the calculation of damages in case of non-fulfillment by the entrepreneur?
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What does the term 'dies interpellat pro homine' refer to in the context of mercantile contracts?
What does the term 'dies interpellat pro homine' refer to in the context of mercantile contracts?
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Study Notes
Business Owner Liability
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Universal Patrimonial Liability: Business owners (individuals or corporations) are responsible for fulfilling legal, contractual, quasi-contractual, and extra-contractual obligations with all their current and future assets.
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Individual Business Owners: Personal/business assets are liable, no separate property protection.
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Corporate Business Owners: Accountable with the entirety of company assets.
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Partnerships: Collective partners bear unlimited, subsidiary, and joint liability for business debts. Limited partners are not liable except for their stated contributions
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Limited Liability Companies/Corporations: Partners are not personally liable for company debts unless specific laws apply.
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Exceptions to Limited Liability: Company managers may be held liable for debts arising after events that trigger dissolution if they fail to maintain proper procedures.
Limiting Liability
- Marital Opposition: In certain cases (such as a spouse opposing their partner's business operation, this must be registered, for liability to be restricted to business assets.).
- Unipersonal Companies: Businesses can limit liability by forming a separate legal entity (e.g., single-member LLC or corporation).
- Investment Companies: Specific corporations can generate separate property funds, with each corresponding to liabilities.
Specific Business Liability Types
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Contractual Liability: Businesses are generally responsible for fulfilling contractual agreements and compensating parties for substandard or late fulfilment of commitments. Liability for agents/employees as well.
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Extra-contractual Liability: Businesses are liable for damages/harm caused by their actions or omissions through negligence. This also involves damage by employees, which is presumed to be negligence by the business owner. There are a few exceptions however.
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Industrial Liability: Manufacturers/producers held to a heightened standard(if a product has defects). Businesses potentially liable for damages from dangerous production processes. Environmental damage potentially becomes a criminal offence. A company may be liable for harm even if they followed procedures with some exceptions.
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Defective Products: Manufacturers are responsible for product defects resulting in injuries or damages, unless proven otherwise. This liability stretches to the original manufacturer, anyone supplying parts, and any recognizable vendor. The burden of proof often falls on the injured party, but there does exist the potential to invest the burden of proof on the manufacturer in specific cases.
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Employee Actions: Business owners may be liable for actions of employees if done within scope of employment; this often becomes a claim of negligence, and the proof for innocence rests with the claim party rather than the employer. The liability is direct and can be addressed with a multitude of methods.
Other Relevant Considerations
- Prescription: Legal action to demand fulfillment of contract or reimbursement for damage has a timeline.
- Exoneration: Only exceptionally can legal liability be dismissed.
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Description
Explore the essentials of business owner liability, covering universal patrimonial liability, individual versus corporate responsibilities, and the implications for partnerships and limited liability entities. This quiz will help clarify the extent of liability for different business structures.
