Questions

Ted's Fruit Wholesalers sold several hundred pounds of fruit to Caroline's Cider House Ltd.After several months, Caroline's had still not made payment on its purchases.Caroline's, did not dispute its liability.Caroline, "the controlling mind, sole officer, and director," explained that Caroline's simply could not pay the bill. Caroline claimed that Ted's contract was with Caroline's Cider House Ltd. And not Caroline.

1.Is Ted's Fruit Wholesalers v. Caroline's Cider House Ltd., a case in which the Court would pierce the corporate veil?

2. Under what circumstances would Caroline be liable for the debts of Caroline's Cider House Ltd.?Would there be a difference in terms of liability if the business was structured as a sole proprietorship or as a general partnership?