Raynor Manufacturing Co. sold garage doors and related products. In 1983, it sold products to Kelly and
Question:
Raynor Manufacturing Co. sold garage doors and related products. In 1983, it sold products to Kelly and Janet Stoner, doing business as Raynor Door Co. of Topeka. The Stoners, operating as a partnership, personally guaranteed payment of any balance to Raynor Manufacturing. The Stoners and Raynor Manufacturing continued doing business for more than a decade. In August 1992, the Stoners incorporated their partnership. In 2005, Raynor Manufacturing made a demand for a past due amount exceeding $223,000. It also sued the Stoners for failing to pay under their personal guaranty. The Stoners argued that their personal guaranty did not survive incorporation, but the district court found for Raynor Manufacturing. On appeal, what should be the result? Why? [Raynor Manufacturing Co. v. Raynor Door Co. 225 P.3d 780 (2010)]
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Business Law Text and Cases
ISBN: 978-1111929954
12th Edition
Authors: Kenneth W. Clarkson, Roger LeRoy Miller, Frank B. Cross