who's at fault and should pay?

Question

this has caused a huge debate among family and friends so I thought I'd ask glow, please bare with me it's kinda long.    a owner of a business can't deal with the stress anymore, instead of giving the business up she allows a previous employee to take over (with the understanding he can use the business name but has to have everything changed to his name and explain to people he is only using the name, he doesn't own it). he doesn't pay the owner ren't for 7mths and is in debt to everyone but hasn't changed his name on everything so some of the debt falls back to her, she takes back the business and finds he's been stealing from customers (overcharging by thousands, stealing donations, lying to customers, charging for products and not delivering, etc.) customers find out and want the money back that he's taken. is it the owners responsibility to refund or the ex employee that used the name?  I'll add that the business is a funeral directors. what do you guys think?

Answer

Obviously the one stealing is at fault here, but legally, the previous owner didn't make sure he was legally the new owner so I think she'll have to pay.

Answer

As long as you own the business you are personally responsible for that business. It was bad business the way the owner handed it over to the employee. He did not protect himself.

Answer

The owner! It's her business. No matter the verbal agreement. Her business, her name, her responsibility.

Answer

In my opinion, if the owner gave up she should have sold the company and not give it up to another employee. With the company in her name still, she's responsible for all the money that has stolen and everything so she should pay for it. For granted I think what the employee did was wrong and he should be held accountable too but in all reality the owner never signed off on the company.

Answer

The one stealing is at fault,  But legally the owner should have known better  to just  hand over  a business without  legal contracts  made.

Answer

The owner should have changed the names, any liability arising from a failure to do so would fall on her/his shoulders. However, he/she would have the right to sue the worker over any losses due to the oral contract that they had made.

who's at fault and should pay?

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