The Legal Environment of Business: Text and Cases
9th Edition
ISBN: 9781305764460
Author: Frank B Cross/ Roger LeRoy Miller
Publisher: CENGAGE C
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Question
Chapter 18, Problem 9BCP
(a)
Summary Introduction
Case summary: Company AA (plaintiff) filed a lawsuit against company AD and its subsidiary AL (defendant) to recover unpaid rent. During the trial, it was found that AL had no employees and was formed to keep the assets of AD away from the creditors. AA pleaded to pierce the corporate veil of AD and AL.
To find:The grounds for piercing the corporate veil.
(b)
Summary Introduction
Case summary: Company AA (plaintiff) filed a lawsuit against company AD and its subsidiary AL (defendant) to recover unpaid rent. During the trial, it was found that AL had no employees and was formed to keep the assets of AD away from the creditors. AA pleaded to pierce the corporate veil of AD and AL.
To find: Result of the case, if parties were closed corporations.
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During the year, Kiner Company made an entry to write off a $9,000 uncollectible account. Before this entry was made, the balance in accounts receivable was $315,000 and the balance in the allowance account was $27,000. The net realizable value of accounts receivable after the write-off entry was: A. $200,000. B. $184,000. C. $176,000. D. $288,000. answer
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The Legal Environment of Business: Text and Cases
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