Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Ben and Jill are both directors of Tek Inc. Since Ben was the CEO, and Tek is a small closely held corporation, Jill was added

Ben and Jill are both directors of Tek Inc. Since Ben was the CEO, and Tek is a small closely held corporation, Jill was added as a director, but she had no active involvement in the corporation. Jill had just signed papers when Ben told her to, but she never read them. Ben had always assured her Tek Inc. was in good financial shape and she had nothing to worry about. Ben and Jill are now both worried that they may be personally liable for some of the Tek debts if Tek is unable to pay them or it goes bankrupt. They have contacted a lawyer regarding this potential liability. Ben was so concerned over the Tek problems that he went over to his friend Peter's house and discussed his problems and drank 8 beers. Ben then walked home and as he crossed the road in the middle of the block (jaywalking), he was hit by Mary who driving her car and texting on her cell phone. Ben has suffered permanent leg injuries and Mary suffered a head injury when the air bag in her Ford car didn't go off. Mary is a famous comedian and she had to cancel her performance at Laughs, a local comedy club. Laughs is now claiming $20,000 in lost profits from Mary for her cancelled shows. Lawyers were called.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Environmental Law Text Cases And Materials

Authors: Elizabeth Fisher, Bettina Lange, Eloise Scotford

2nd Edition

0198811071, 978-0198811077

More Books

Students also viewed these Law questions