Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

In the early 1970s, Kate Fulleropened an account at Tulip WholesaleFlorist, Inc., to purchase flowers and florist supplies for her flower shop, called Bountiful BeautyFlower

In the early 1970s, Kate Fulleropened an account at Tulip WholesaleFlorist, Inc., to purchase flowers and florist supplies for her flower shop, called Bountiful BeautyFlower Shop, which she operated as a sole proprietorship. In 1983, the flower shop was incorporated as Bountiful BeautyFlower Shop, Inc.Fullercontinued to order supplies from Tulip, as did her son when he began to manage the day-to-day operations of the shop during the 1990s. Tulip, which had no knowledge that Bountiful Beautywas now a corporation, sued Fullerand her son personally to recover a balance owing on the Bountiful Beautyaccount (for purchases made after Bountiful Beauty had incorporated). Is the fact that Tulip was never informed of the subsequent incorporation of the Bountiful Beauty Shop a sufficient ground for piercing the corporate veil and holdingFullerand her son personally liable for the debt? 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

Smith And Roberson Business Law

Authors: Richard A. Mann, Barry S. Roberts

18th Edition

0357364007, 978-0357364000

More Books

Students also viewed these Law questions

Question

1. Avoid conflicts in the relationship

Answered: 1 week ago

Question

1. What will happen in the future

Answered: 1 week ago