El Centro College Vicarious Liability Personal Liabilities IRAC Method Memorandum This question must include the front of the Business organization cover page to answer each topic. Three brothers Tim, Tom, and Ted decide to start their own construction company. They plan to buy a piece of land and build a new subdivision. They will build 3 different types of homes on the property and then sell the houses to make a profit. They also plan to take out a loan to purchase the land from Wolf & Co. lenders. They have come to our offices to find out what kind of entity they should set up for their new business. They would like Tim to handle daily operations of the construction. Tom will be responsible for selling the houses once they are built. Ted will be responsible for all the contracts, books, and records. I have asked you to prepare a memo on what type of entity they should set up. Their main concerns are the liability for the debt from Wolf & Co., liabilities from accidents involving workers at the construction site, and making sure they are all treated fairly when in comes to profits. Be sure to use the IRAC method in drafting your memo for your supervising attorney. Be sure to address the pros and cons of them using the various entity types that we have covered in class (General Partnerships, Limited Partnerships, Limited Liability Partnerships and Limited Liability Companies) AND for each entity type discuss what types of liabilities they may be facing (Personal liabilities as well as entity liabilities for both vicarious liability and the acts of agents). BOOK: BUSINESS ORGANIZATIONS FOR PARALEGALS.