Brian is the 99% shareholder, president, and director of Arapine Corp. He frequently uses the corporation credit card for his personal expenses. If Arapine is insolvent and unable to pay its debts, and the corporation’s creditors sue Brian personally, what is the likely result?
Brian is liable because he is a 99% shareholder.
Brian is liable if he, as president, made the contracts with the creditors.
Brian is liable because the court will pierce the corporate veil
Cary, Dean, and Madeline are partners in a furniture store. Madeline wants to buy some antiques from an upcoming estate sale. Dean thinks it’s a good idea, but Cary says it is too pricey. Madeline goes ahead and buys the antiques. Which of the following best describes the situation?
Cary will not be liable to the estate on the antiques contract.
The partnership and all three partners will be liable on the contract for the antiques.
All three partners must agree on the furniture purchase.
The estate can hold the partnership liable, but Madeline has breached her duty to the partnership.
Cary, Dean, and Madeline are partners in a furniture store. While on his way to deliver some furniture to a customer, Cary accidentally runs over Pamela Pedestrian. Pamela sues the partnership. Which of the following is true?
All three partners are liable to Pamela.
All of these
Cary is liable to his partners for breaching his duty as an agent for the partnership.