You can and should complete this assignment using the materials in Chapters 6, 7 and 10 of the text book. You do not need to consult other sources to complete the work, and will receive no additional credit if you do. Louie?s & Bob?s Italian Autoparts Louie owns an auto supply store in Downey; it is very specialized and carries only parts for Italian cars. The business was Louie?s father?s before he died, when Louie took it over. Louie?s good friend Bob has worked for him for more than 10 years, and 5 years ago they changed the name from ?Louie?s Motor Parts? to ?Louie & Bob?s Italian Autoparts? even though Bob was not an owner. Louie, as the owner, worked only part time at the store, and put a lot of trust in Bob, who ran the day to day aspects of the business. Bob did all of the books, ordered the inventory, signed company checks, and was there every day to see the customers. Recently Louie and Bob had been discussing how Bob could become a partner in the business. The store had inventory worth more than $250,000, and Louie wanted Bob to ?buy-in? to the business by paying him $100,000 for a 1/3 share, but Bob did not have anything close to that amount. When Bob went on a two-week vacation Louie worked every day at the store. Louie had not looked at the banking records for several months, and decided to go through the recent bank statements. Louie saw to his horror that Bob had been writing bad checks on the account to their suppliers; the bank was threatening to close the checking account and some suppliers had started to ship parts on a ?COD? (cash on delivery) basis. Louie decided to hire an investigator to see what was going on. The investigator discovered that Bob had been taking most of the cash out of the register during his shifts and had started a competing business selling auto parts at local swap meets. The investigator also observed Bob taking inventory from Louie & Bob?s Italian Autoparts and selling it at the swap meets. Please answer the following three (3) questions: (1) Can Louie sue Bob in tort for his actions? If so, what torts do you think he committed? (Limit yourself to the torts described in the textbook). (2) Can Bob be criminally prosecuted for his actions? If so, what crimes do you think he committed? (Limit yourself to the crimes described in the textbook). (3) Explain the differences in the procedures that take place in (1) a civil lawsuit filed by Louie against Bob to recover damages for Bob?s conduct, and (2) a criminal prosecution of Bob for the same conduct.
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