Question
AgBeast, Inc., a publicly traded corporation, is a holding company operating in a variety of agricultural lines of business. An AgBeast subsidiary called LilMoo Corp.
AgBeast, Inc., a publicly traded corporation, is a holding company operating in a variety of agricultural lines of business. An AgBeast subsidiary called LilMoo Corp. owns and operates several mid-sized dairy farms. AgBeast's CEO, Bob, happened to be visiting LilMoo's headquarters last year and was surprised to learn that LilMoo's delivery drivers had been instructed never to exceed a posted speed limit. Knowing that one of LilMoo's most significant problems was customer anger over poor delivery times, Bob drafted a memo to all LilMoo drivers instructing them to drive at up to ten miles over any posted limit, whenever feasible. Bob insisted that the memo be distributed immediately on LilMoo letterhead.
Shortly thereafter, injuries involving LilMoo drivers increased 400%. On those facts, Bob's wrongdoing would strongly support piercing the corporate veil to permit tort victims to collect from AgBeast. True or false?
Group of answer choices
a. True. The doctrine of piercing the veil is applied very flexibly to "prevent fraud or injustice."
b. True. The facts suggest that Bob considered LilMoo to be AgBeast's "alter ego" and that there is no meaningful distinction between Bob and LilMoo.
c. True, if AgBeast has occasionally caused LilMoo to make distributions to AgBeast when AgBeast itself has had cashflow needs.
d. False.
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