Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Handy Andy (HA) contracts with X Corporation to perform extensive repairs on X's broken assembly line. The parties agree that payment will be made in

Handy Andy (HA) contracts with X Corporation to perform extensive repairs on X's broken assembly line. The parties agree that payment will be made in full upon completion of the repairs. After HA completes his work and submits an invoice for payment, X Corporation informs him that it cannot pay because it has been undercapitalized for some time and has to pay other creditors first. HA sues and obtains a judgment against X Corporation. How likely is it that HA can pierce the corporate veil and obtain a judgment against the very wealthy sole shareholder of X Corporation? Group of answer choices Likely because of the wealth of the sole shareholder of X Corporation. Likely because of X Corporation's undercapitalization. Unlikely because HA could have negotiated better payment terms. Unlikely because courts have never pierced the veil in breach of contract cases

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

Intellectual Property- The Law of Trademarks, Copyrights, Patents, and Trade Secrets

Authors: Deborah E. Bouchoux

3rd Edition

978-1111648572, 1111648573, 1428318364, 978-1428318366

More Books

Students also viewed these Law questions

Question

explain the use of models in business to business communications

Answered: 1 week ago