M&M Country Store, Inc., operated a gas station and convenience store. Debra Kelly bought M&M from Mary

Question:

M&M Country Store, Inc., operated a gas station and convenience store. Debra Kelly bought M&M from Mary Millett. Under the purchase agreement, Millett was to remain as the corporation’s sole shareholder until the price was fully paid. A default on any payment would result in the return of M&M to Millett. During Kelly’s management of M&M, taxes were not remitted, vendors were not paid, repairs were not made, and the store’s gas tanks and shelves were often empty. Kelly commingled company and personal funds, kept inaccurate records, and allowed M&M’s business licenses and insurance policies to lapse. After she defaulted on her payments to Millett and surrendered M&M, the company incurred significant expenses to pay outstanding bills and replenish the inventory. Can M&M recover these costs from Kelly? Explain. [M&M Country Store, Inc. v. Kelly, 159 A.D.3d 1102, 71 N.Y.S.3d 707 (3 Dept. 2018)] (See Duties and Liabilities of Directors and Officers.)

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Business Law Text And Cases

ISBN: 9780357129630

15th Edition

Authors: Kenneth W. Clarkson, Roger LeRoy Miller

Question Posted: