Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

In 2000, Alex and his two adult daughters, Ava and Rylee, created a corporation, Alex and Daughters Electrical Company. During the first year or so,

In 2000, Alex and his two adult daughters, Ava and Rylee, created a corporation, Alex and Daughters Electrical Company. During the first year or so, they maintained corporate bank accounts, had the name printed on trucks and stationery, and held annual stockholders' meetings. After Alex died in 2018, Ava and Rylee forgot about the corporation and failed to hold meetings or otherwise follow the corporate formalities. In 2019, an employee'sallegedly negligent electrical wiring caused a disastrous fire at a local elementary school, in which several children and school personnel were injured.

What additional facts, if true, could allow Ava and Rylee to be held personally liable to the injured parties?

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

Introduction To Business Law

Authors: Jeff Rey F. Beatty, Susan S. Samuelson

3rd Edition

978-0324826999, 0324826990

More Books

Students also viewed these Law questions