Carleton operated a taxi business using a number of separate corporations, each of which owned two cabs. Carleton owned all the shares of each corporation and managed the corporation's business. Each corporation maintained the minimum amount of third$-$party liability insurance coverage required by law at the time: $$10,000.$ Walkovsky was hit by a taxicab owned by ane of Carleton's corporations and suffered serious injuries. She sued the corporation that owned the cab and was awarded compensatory damages in an amount that far exceeded $$10,000.$ However, because the defendant corporation had no assets other than the cabs, which were not worth much, she could not actually collect much more than the $$10,000$ that was available under the corporation's insurance policy.

Questions for Discussion

$1.$ Is it appropriate for a person to carry on a taxi business through a

corporation with assets that are insuricient to meet the reasonably foreseeable liabilities resulting from car accidents?

$2.$ Should the court disregard the separate