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Simple English definitions for legal terms

limited personal liability

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A quick definition of limited personal liability:

Term: Limited personal liability

Definition: Limited personal liability means that if someone invests in a business or is part of a legal relationship like a corporation or partnership, they usually can't be held responsible for any problems or debts the business has. They might only lose the money they invested. For example, if someone buys stock in a company and the company goes bankrupt, the stockholder might lose their money, but they won't have to pay any extra money to cover the company's debts. However, there are some exceptions to this rule, like if the investor did something wrong or illegal.

A more thorough explanation:

Definition: Limited personal liability refers to a legal concept where an individual or investor is not held responsible for the liabilities or damages of a business, except in certain circumstances. This term applies to various legal relationships such as corporations, partnerships, limited liability corporations (LLCs), or trusts. In such cases, a person with limited personal liability cannot be sued personally to cover any liabilities, and they may only lose the amount invested in the entity.

For example, if you own stocks in a corporation, you cannot be held liable for anything except for the potential loss in the price of your shares. Similarly, if you invest in an LLC, you may be held personally liable for debts only if you participated in some form of deception.

However, there are exceptions to limited personal liability that vary depending on the legal relationship. For instance, settlors of a trust may be reached by creditors in some circumstances if fraud is involved.

Examples:

  • John invests $10,000 in a corporation. The corporation goes bankrupt, and John loses his investment. However, he is not held personally responsible for any of the corporation's debts or liabilities.
  • Sarah is a member of an LLC. The LLC takes out a loan, but it cannot repay the debt. Sarah is not held personally responsible for the debt because she did not participate in any fraudulent activities.
  • Mike creates a trust and transfers his assets to it. Later, he is sued for fraud, and the court orders him to pay damages. The court can reach the assets in the trust to satisfy the judgment because Mike was involved in fraudulent activities.

The examples illustrate that limited personal liability protects investors and individuals from being held responsible for the debts and liabilities of a business or entity, except in certain circumstances. In the first example, John is not held responsible for the corporation's debts because he is a stockholder. In the second example, Sarah is not held responsible for the LLC's debt because she did not participate in any fraudulent activities. In the third example, Mike is held responsible for the trust's assets because he was involved in fraudulent activities.

limited partnership | limited power of attorney

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MrThickRopes
16:04
@CheeseIsMyLoveLanguage: so when I get decisions EST?
CheeseIsMyLoveLanguage
16:07
@MrThickRopes: I saw a YLS reject wave at 4:45 a couple of weeks ago, so I'd say 5:00 is a safe cutoff guess for schools in EST, given that's when admin offices typically close for the day
CheeseIsMyLoveLanguage
16:10
Have you looked at the admit graphs for the schools you've applied at? It can be helpful. For example, I sort the results based on complete or under review date and see if people who went complete or under review after me have received answers. If they haven't, scrolling down to see when people who have received answers, and when they went complete or under review, gives me an idea of how far out I might be for getting a response
CheeseIsMyLoveLanguage
16:11
@MrThickRopes: If I see people that went complete or under review after I did, and they are getting interview invites, then I lower my expectations for a positive result at that school.
MrThickRopes
16:12
Thx
CheeseIsMyLoveLanguage
16:12
@MrThickRopes: If someone who went complete or under review two weeks after me is getting accepted or interview invites, then it seems likely that I'm not a hot candidate for that school. Conversely, if there have been rejections of applicants who went complete or under review after me, that I feel somewhat confident that I am still in consideration
CheeseIsMyLoveLanguage
16:15
@MrThickRopes: you can also sort by decision date and look at the graph at the top left to get a good idea of when schools have waves (every week, every other week, Thursdays, rainbow or solid, etc.). While you still won't have control, it gives you a better idea of what you can expect and when
MrThickRopes
16:20
Cool I’ll do that
LeanDeadCloud
17:35
BC is every two weeks so there is a very good chance their wave will be on thursday
SplittingNotQuitting
17:42
How does the live updates page work? I notice that I'll often see the same person receive 4-5 or even more decisions within a minute or two. Do schools provide decisions for specific LSAC account #s and then LSAC releases them in batches or something along those lines?
CheeseIsMyLoveLanguage
17:44
@SplittingNotQuitting: If you click on the name, you'll likely notice that they are updating their profile with decisions received on multiple different days.
CheeseIsMyLoveLanguage
17:45
@SplittingNotQuitting: Everything on here is self-reported, so we have to count on each other to be accurate and update for us to use the data points effectively
SplittingNotQuitting
17:46
Ah, I understand. I was under the impression it was interfaced with the automatic status updater. Thanks.
CheeseIsMyLoveLanguage
17:47
@SplittingNotQuitting: I actually haven't seen anyone on here say that the automatic status updater works. Just lots of questions from individual users as to why they can't get their updater do work 🙃
CheeseIsMyLoveLanguage
17:48
**to work
SplittingNotQuitting
17:50
Haha. I was wondering how legit it was. I'll just continue to watch my LSAC status tracker and email like a hawk.
CheeseIsMyLoveLanguage
17:51
I am half expecting a restraining order from my status tracker. I feel dangerously close to reaching stalker status 😳
UnderRepresentedTryhard
18:55
W&M sent an apology letter for not having my decision on time. I appreciate the thought but I also was preparing myself for the worst
CheeseIsMyLoveLanguage
19:20
@UnderRepresentedTryhard: Did they send you an answer with their apology?!?
bigfatsloth
20:48
should i withdraw my applications when i decide where im going is that a part of the process or is it not needed
eggan
20:51
it would b considerate to the schools and to the people still waiting for decisions yes
eggan
20:52
anyone on hold, their fate depends on how many people withdraw before the deposit deadline
bigfatsloth
20:52
interesting ok i’ll do that thank u eggan
DastardlyDaniel
21:12
Anybody know the best place to find admitted students group chats?
PuzzlingDustyJackal
22:26
GWU status checker says decision made but no email bruh
UnderRepresentedTryhard
22:27
@CheeseIsMyLoveLanguage: No. If you mean “answer” as in being accepted/denied, no
UnderRepresentedTryhard
22:27
Check portal
TheKAF
22:46
Is a $30k total difference in COA between two similarly ranked schools too much? Even if the most expensive one has a niche concentration I want to pursue?
UnderRepresentedTryhard
22:54
uhhh if you're rolling in dough (hundreds of millions to billions) sure...but if you're taking out a loan, don't do it. You can pursue what your niche falls under and their may be a course that teaches that niche. check courses if they're available tho
UnderRepresentedTryhard
22:55
wrong there. i deserve death penalty
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