Book Title
10th Edition
ISBN: 9781337605656
Author: CROSS
Publisher: CENGAGE L
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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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