BUSINESS LAW QUESTION

Case 4

The corporation defendant consented to a judgement against it. The issue was whether its owner/director, Smith, was personally liable. The defendant corporation provided cabinets for Smiths personal residence. The transaction was with the defendant corporation. The house went into foreclosure but the corporation was owed $250,000. Smith did not give any personal guarantee; he owed $250,000 to the defendant corporation for the cabinets.

Is this a case in which the Courts would lift the corporate veil? Why or why not?

Case 5

Smith was an inventor who had patented and produced a tool containing bearings that could better handle the download in well-drilling operation. A corporation manufactured an identical product and Smith sued the corporation for patent infringement.

Explain the appropriate remedies available to Smith. How would if affect your answer to know that Smith manufactured a tool sold to the industry that contained the bearing at the time the patent was applied for? Note as well that the corporation also claimed that the development of the bearings was an obvious development to anyone in the industry.