Ronald Hochberg is the President, one of three Directors and one of three Shareholders of "Diamond Auto Body & Repair, Inc., an Illinois corporation". Hochberg, as manager of the day to day operations, personally ordered (using the name "Diamond Auto Construction") and received auto parts from Hoskins Chevrolet. Hochberg paid all of the invoices from a checking account under the name of "Diamond Auto Construction". Hoskins Chevrlet continued to send invoices to "Diamond Auto Construction", until they accumulated to $40,000.00. When Hochberg was sued for the $40,000.00, he argued that he was not personally liable for the invoices, because the parts were ordered for "Diamond Auto Body & Repair, Inc.", and that he was only acting as the President of the corporation. He testified that the corporation was doing business under the assumed name of Diamond Auto Construction. The evidence at trial showed that neither Hochberg nor Diamond Auto Body & Repair, Inc., had registered the assumed name with the Secretary of State as required by statute, nor otherwise indicated to Hoskins that they were dealing with a corporation. He never disclosed the existence of the corporation to Hoskins.

Please discuss .

Is Hochberg personally liable for the $40,000 Debt ? Why or Why not?

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