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Book Title
10th Edition
ISBN: 9781337605656
Author: CROSS
Publisher: CENGAGE L
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Chapter 16, Problem 1CT
Summary Introduction

Case summary: Person D decided to start a new business. Person K initially loaned $ 50,000 to person D for an online project on a personal level for the establishment of the business. Person K also provided personal loans for other business expenses and the total of the series of personal loans amounted to $2,20,000. D repaid only $9000 against the outstanding debt and the petition for bankruptcy was filed by him. D kept no record of the business transaction. The court denied the petition filed by D for the discharge of the debt.

To find: The ways by which the individuals seeking funds for online projects avoid personal liability.

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