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A state law requires a $1,000,000 liability policy on any corporation that owns two or more taxis. Alex has opened 10 separate corporations, each with

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A state law requires a $1,000,000 liability policy on any corporation that owns two or more taxis. Alex has opened 10 separate corporations, each with a separate corporate name, and each purporting to own one taxi. Tony, a driver who works for Alex, is in an accident and causes an injury to Louie. Louie sues and insists on a $1,000,000 recovery. Alex answers and says he is not required to provide a $1,000,000 policy because the one corporation owns a single taxi. A court could find Alex liable for $1,000,000 under the Alter Ego Doctrine. O Louie can only sue the one corporation for the policy limit. O Louie would have to prove that Tony acted negligently. O Louie would have to prove that there was some defect in the taxi that caused the accident. 2 pts

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