Lennie purchased a quantity of pressure-treated lumber from Goodwood Building Ltd (Goodwood) in the spring. Lennie used the wood to build a deck around the front of his house. By the fall, however, he found that the wood was starting to rot, and it appeared that the stain used to treat the wood was peeling away. When Lennie tried to contact Goodwood, he discovered that the store had closed, and the company was insolvent. Lennie managed to locate the salesman who sold him the wood, and he agreed that the wood appeared to be defective. He also told Lennie that because the wood had been imported from Thailand, a lawsuit against the manufacturer would probably be long and expensive. He suggested that Lennie bring an action against the directors and shareholders of Goodwood. The shareholders and directors are Jim, Tim, and Tom.

(a)What are Lennie's chances of success against the shareholders and directors? (5 points)

(b)Does your answer change if Goodwood is an unincorporated business in which Tim, Jim, and Tom are the owners and managers? What are Lennie's chances of success against them in this circumstance? (5 points)