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m forms a corporation, called Not-So-Bright Colors, Inc., to paint houses. Jim is the sole officer and director. Jim hires through his corporation his long-time

m forms a corporation, called Not-So-Bright Colors, Inc., to paint houses. Jim is the sole officer and director. Jim hires through his corporation his long-time friend, Brian, to paint houses. Jim also buys a truck through his corporation to drive to the work sites and carry painting supplies.

Brian, with Jim's consent, also uses this truck during the evening hours to pinstripe automobiles. Jim and Brian agree that Brian's unincorporated auto detailing business, Sort-of-Straight Lines, is Brian's business alone, and that Jim is not entitled to any of the profits. However, Brian agrees to pay for the gas and any upkeep or repairs to the truck related to his auto detailing business.

Brian's wife leaves him. Brian, a non-drinker, "ties one on." That evening, Brian attempts to drive the truck to one of his customer's garages to detail a vehicle and, on the way, rear-ends Victim at a stop sign. Victim's injuries are substantial and exceed the value of the corporate assets and any available insurance.

  1. Set forth your best argument that Not-So-Bright Colors, Inc., is liable to Victim.
  2. Set forth your best argument that Jim is personally liable to Victim.
  3. Set forth your best argument that Not-So-Bright Colors, Inc., is not liable to Victim.
  4. Set forth your best argument that Jim is not personally liable to Victim.

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