Question $16$

$4$ pts

Falcon, Inc., is a corporation specializ ng in quick, discreet, private air travel. Han is a shareholder in Falcon, owning $70\%$ o the shares. In addition to being a shareholder, Han is also the lead pilot for Falcon.

There is a loss of cabin pressure on a flight one day, and the oxygen masks take a long time to deploy. Leia, a passenger, goes without oxygen for too long and suffers a mild brain injury. She sues Falcon, alleging that it failed to conduct proper safety inspections of its equipment. Moreover, Leia's attorney, Lando, comes to believe that Han was using Falcon's assets $($particularly cash$)$ for personal gain. Based on what they argue is an improper separation of shareholder and corporation, Lando ask the court to pierce the corporate veil and hold Han personally liable for Leia's injuries.

Han counters that where it might appear that he took money from Falcon, he was actually receiving bonuses on his salary as a pilot. He further argued that he frequently piloted high$-$risk flights and his employment contract entitled him to additional compensation.

Is the Court likely to pierce the corporate veil and why?

No$.$ Courts rarely pierce the corporate veil and the evidence is not strong enough to do so here

No$.$ The Court will decide it's unfair for Leia to recover from both the corporation and the shareholders

Yes. The Court will decide to pierce the corporate veil because there is ample evidence of intermingling of corporate and shareholder assets

Yes. The Court will pierce the corporate veil because Falcon should have done a better job maintaining its equipment

Question $17$

$4$ pts

C

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