Business and Legal Practices Flashcards

A massage therapist operating as a sole proprietor discovers that a former client is using the therapist's name and likeness on a competing business's website without permission. Under which legal doctrine would the therapist most likely seek immediate relief to stop the ongoing harm while a full lawsuit is pending?

Answer: Injunctive relief

Injunctive relief is a court-ordered remedy that compels a party to stop a specific action immediately, making it the appropriate tool to halt ongoing unauthorized use while litigation proceeds. Compensatory damages address past financial harm but do not stop future conduct. Respondeat superior is a doctrine holding employers liable for employee actions—irrelevant here. Unjust enrichment is an equitable remedy for restitution, not immediate cessation of an act.

A massage therapist's business partner dies unexpectedly. They operated under a general partnership agreement that is silent on what happens upon a partner's death. Under most state statutes derived from the Uniform Partnership Act (UPA), what is the most likely legal outcome?

Answer: The partnership is dissolved and must be wound up unless the surviving partner buys out the estate

Under the UPA, a partner's death is a dissociation event that triggers dissolution and winding-up of the partnership unless a buyout agreement or surviving-partner continuation clause exists. The heirs do not automatically become partners—they may have economic rights but not management rights. The business does not automatically convert to a sole proprietorship; proper legal steps must be taken. The surviving partner does not inherit the share outright without purchasing it from the estate.

A licensed massage therapist employs two certified massage therapists. One employee, while performing a session, accidentally injures a client by using contraindicated deep-tissue pressure that was not requested. The client sues the business owner. Which legal doctrine most directly supports the client's claim against the owner?

Answer: Respondeat superior

Respondeat superior ('let the master answer') holds employers vicariously liable for the negligent acts of employees committed within the scope of employment. Performing a massage session is squarely within the scope of an employee therapist's duties. Contributory and comparative fault doctrines address shared blame between plaintiff and defendant, not employer liability. Assumption of risk requires that the plaintiff knowingly accepted the specific risk of injury, which is not established here.

A massage therapist signs a commercial lease that includes a 'personal guarantee' clause. The therapist later incorporates the practice as an LLC and assigns the lease to the LLC. The landlord did not release the personal guarantee in writing. If the LLC defaults on rent, what is the therapist's personal liability?

Answer: Full personal liability remains because the personal guarantee was not released by the landlord

A personal guarantee is a separate contractual obligation between the guarantor and the landlord. Forming an LLC or assigning the lease to a new entity does not extinguish a personal guarantee unless the creditor (the landlord) explicitly releases it in writing. The LLC's limited liability protections apply to new obligations of the LLC—they do not retroactively eliminate personal guarantees already signed. The therapist remains fully liable under the guarantee regardless of the business entity change.

A massage therapist offers a prepaid package of 10 sessions sold at a discount. After the client uses 4 sessions, the therapist closes the business due to illness. Under consumer protection principles applicable to prepaid services, what is the therapist's primary legal obligation?

Answer: To refund the unused portion of the prepaid package to the client

When a business closes and cannot fulfill prepaid services, consumer protection law and contract principles require that the provider refund the value of unrendered services. Six sessions remain unused; the client paid for those services and is entitled to their monetary equivalent. A prorated credit is insufficient if the therapist is closing entirely. Transferring to a colleague or donating funds does not fulfill the therapist's legal obligation to the client without the client's explicit agreement to those alternatives.

A massage therapist's SOAP notes are subpoenaed as part of a personal injury lawsuit in which the therapist's client is the plaintiff. The therapist's attorney advises that the records are protected. However, which of the following scenarios would most likely OVERRIDE the therapist-client privilege and compel disclosure?

Answer: The client has placed their physical condition directly at issue in the lawsuit and the records are material to that claim

When a client places their own physical or mental condition at issue in litigation—such as suing for physical injuries—courts consistently hold that the privilege is waived as to records directly relevant to those claims. The client cannot simultaneously use their health condition as the basis of a lawsuit and shield health records from discovery. A supervisor review clause in an intake form relates to treatment operations, not litigation disclosure. Opposing counsel cannot compel disclosure without a court order. Billing records may be discoverable for different reasons but do not address the privilege override question.