Question
ABC, Inc. is a pizza restaurant owned by Bob, Ann, and Clyde. It is incorporated. Bob purchased tomato products and charged the purchases to an
ABC, Inc. is a pizza restaurant owned by Bob, Ann, and Clyde. It is incorporated. Bob purchased tomato products and charged the purchases to an account at Anns Best Hamburgers, Inc. Ann is the sole shareholder of that company. She is also the same Ann who is a shareholder in ABC, Inc.
The governor issued an order prohibiting ABC, Inc. from dining room operations. It could only provide delivery or pick-up purchases. Due to the governments regulations, ABC, Inc. lost too much money and ceased its business operations. It was later dissolved. Anns Best Hamburgers continued to provide services and food products to her customers and did not close operations.
Anns Best Hamburgers is seeking to recover money it paid for ABC, Inc.s tomato product purchases charged to Anns account. The amount Anns Best Hamburgers is seeking to recover is $10,000 from ABC, Inc. She argues that Anns Best Hamburgers, Inc. should not be liable for another companys corporate debt and should recover reimbursement funds it paid because Bob charged it to Anns Best Hamburgers account. Bob did not have Dans consent. She contends that Bob should be personally responsible for the $10,000 if ABC, Inc. has no assets due to its business closure and dissolution.
Analyze the claims and defenses from Bobs perspective. Should the court, in the event Ann sues ABC, Inc. and Bob pierce the corporate veil and hold Bob individually responsible? Is ABC, Inc. liable? Discuss fully.
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