M&M Country Store, Inc., operated a gas station and convenience store. Debra Kelly bought M&M from Mary Millett. Under the purchase agreement, Millett was to remain as the corporation's sole shareholder until the price was fully paid. A default on any payment would result in the return of M&M to Millett. During Kelly's management of M&M, taxes were not remitted, vendors were not paid, repairs were not made, and the store's gas tanks and shelves were often empty. Kelly commingled company and personal funds, kept inaccurate records, and allowed M&M's business licenses and insurance policies to lapse. After she defaulted on her payments to Millett and surrendered M&M, the company incurred significant expenses to pay outstanding bills and replenish the inventory. Can M&M recover these costs from Kelly? Explain.

textbook:

Cross, F. B., & Miller, R. L. (2021). The legal environment of business: Text and cases (11^thed.).Boston, MA: Cengage. (ISBN 978-0-357-12976-0)