Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Guns 'R' Us, Inc. has been selling machine guns, against state and federal law, to individuals with criminal records. A 25 year-old with criminal background,

Guns 'R' Us, Inc. has been selling machine guns, against state and federal law, to individuals with criminal records. A 25 year-old with criminal background, who purchased one of their guns, shot three innocent individuals at a gym. The family of the victims plan to sue the company and its only shareholder brothers, Dan and Mike, for damages. The defendants claim that they can't be parties to the lawsuit because Guns 'R' Us is a corporation and as shareholders, they cannot be personally liable for the obligations of the company. In court, the evidence showed that the defendants, while keeping a separate bank account for the corporation, had commingled its funds with their personal finances. They had used the accounts for the corporation and their other businesses interchangeably, with no regard for which company should be providing money for which expenses. Similarly, the books for the businesses were inadequately tracked, distinguished, and recorded.How would you decide the case if you were the judge? Explain

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

Business Law Text And Cases

Authors: Kenneth W. Clarkson, Roger LeRoy Miller

15th Edition

0357129636, 978-0357129630

More Books

Students also viewed these Law questions

Question

What are the assumptions required of a multiple regression model?

Answered: 1 week ago

Question

Go, do not wait until I come

Answered: 1 week ago

Question

Make eye contact when talking and listening

Answered: 1 week ago