Tort and Criminal law

Tom’s and Greg’s Firearms

Tom owns a gun store in Downey; it is very specialized and carries only American made firearms- The business was Tom’s father’s before he died,
when Tom took it over. Tom’s good friend Greg has worked for him for more than 12 years, and 3 years ago they changed the name from “Tom’s
Firearms” to “Tom’s & Greg’s Firearms” even though Greg was not an owner.

Tom, as the owner, worked only part time at the store, and put a lot of trust in Greg, who ran the day to day business- Greg did all of the books,
ordered the inventory, signed company checks, and was there every day to see the customers- Recently Tom and Greg had been discussing how
Greg could become a partner in the business- The store had inventory worth more than $275,000, and Tom wanted Greg to “buy-in” to the business
by paying him $100,000 for a 1/3 share, but Greg did not have anything close to that amount-

When Greg went on a two-week vacation Tom worked every day at the store- Tom had not looked at the banking records for several months, and
decided to go through the recent bank statements- Tom saw to his horror that Greg 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-

Tom decided to hire an investigator to see what was going on- The investigator discovered that Greg had been taking cash out of the register during
his shifts and had started a competing business selling guns at local gun shows- The investigator also observed Greg taking inventory from the
store and selling it at the gun shows-

Please answer the following three (3) questions:

(1) Can Tom sue Greg in tort for his actions? If so, what torts do you think he committed? (Limit yourself to the torts described in the textbook)-
Explain why you think Greg committed the torts-

(2) Can Greg be criminally prosecuted for his actions? If so, what crimes do you think he committed? (Limit yourself to the crimes described in the
textbook)- Explain why you think Greg committed the crimes-

(3) Explain the differences in the procedures that take place in (a) a civil lawsuit filed by Tom against Greg to recover damages for Greg’s conduct,
and (b) a criminal prosecution of Greg for the same conduct-





Sample Solution

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