Question
Jimmy Shortcut worked as a salesman for a local pool builder. He was tired of working for a boss who did not appreciate his contribution
Jimmy Shortcut worked as a salesman for a local pool builder. He was tired of working for a boss who did not appreciate his contribution to the business and decided he was going to start his own pool company. After all, he was a great salesman and had obtained the necessary builders license. All he had to do was to sell the pools and subcontract out the work.
Jimmy had been told by a friend who worked in a law office that he should form a corporation to protect himself from personal liability for acts of the business. His friend told him it was easy. Just go to the local office supply store and buy a do-it-yourself incorporation kit on CD-ROM.
That was exactly what Jimmy did and filed the Articles of Incorporation with Florida's Secretary of State. The company's name was Jimmy's Pools, Inc. He decided that he would not have an organizational meeting of the corporation because he owned 100% of the company. Nor did he issue any stock.
He bought a car and registered it in the name of the corporation.
Then he started selling pools. His business cards included the company's name, Jimmy's Pools Inc., and his name followed by "President."
After two years the business was doing great but had virtually no assets, except for the car. Jimmy had closed the business account because of the bank fees. He kept careful books that separated his business income and expenses from his personal income and expenses.
While driving home one day, Jimmy was thinking of how happy he was that he went into business for himself. He was thinking about how he could expand the business, rather than paying attention to his driving. As a result, he ran into a car being driven by Samantha Lawsuit.
Ms. Lawsuit's car was badly damaged and she suffered a severe case of whiplash.
Ms. Lawsuit's attorney discovered that the car owned by Jimmy's Pools, Inc. was uninsured. He also learned that the corporation had no assets except for the car. He decided that he would need to go after Jimmy personally in order to get a recover for his client.
Assume that the accident occurred in Florida.
f your last name begins with the letters L-Z, you will represent Jimmy's Pools, Inc.
- Students representing Jimmy should argue that he should not be personally liable and that Ms. Lawsuit can only recover from the corporation. You should cite at least one case to support your position
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