Corrigan was the sole proprietor of Tastee Burgers, a restaurant. In 2018, Bergdahl allegedly suffered from food poisoning after eating lunch at Tastee Burgers. In 2019, Corrigan died and left everything, including Tastee Burgers, by will to his niece, Layla. Layla then reorganized Tastee Burgers as a limited liability corporation with her best friend Horowitz. In 2020, Bergdahl filed a lawsuit for $500,000 against Tastee Burgers for long term health effects from the food poisoning. Layla and Horowitz have denied responsibility for the injuries and seek a dismissal of the lawsuit. What should the court decide?

Multiple Choice

• The court should grant a dismissal, as sole proprietorships terminate upon the death of the sole proprietor.
• The court should deny the dismissal and let the lawsuit proceed against Layla only, because she alone inherited the sole proprietorship.
• The court should deny the dismissal and let the lawsuit proceed against both Layla and Horowitz.
• The court should grant a dismissal, as lawsuits against individuals associated with sole proprietorships are invalid as a sole proprietorships offer protection from liability.