Corporate Status. Cecil Hill was in the construction trade. He did business as "C&M Builders, Inc," although there was no such corporation. County Concrete Co supplied "C&M Builders, Inc" with over $50,000 worth of concrete for which it was not paid
The supplier filed a suit in a Maryland state court against Hill personally. Hill argued that because the supplier thought it was doing business with a corporate entity, C&M was a de facto corporation, and thus Hill was not personally liable. Should Hill be allowed to avoid liability on this basis? Why or why not?
Corporate status
The court ruled in favor of the supplier, and Hill appealed. The Maryland Court of Special Appeals affirmed the judgment in the supplier's favor. The appellate court emphasized that the supplier was misled as to the entity with which it was doing business. The court concluded that Hill, by doing business under a wrong name, was not acting in good faith. The court held that this prevented Hill from asserting that "C&M Builders, Inc." was a de facto corporation. Thus, Hill could not avoid liability on the supplier's claim.
You might also like to view...
What are the assumptions made by the regression model in estimating the parameters and in significance testing?
What will be an ideal response?
Prepare a December 31 balance sheet in proper form for Smokey River Supplies from the following list of the accounts: Cash………………………….…………….........$10,000Accounts receivable…………………………….. 8,000Supplies………………………………………….12,000Equipment……………………………………..35,000Land……………………………………..............18,000Accounts payable……………………………..13,000Notes payable……………………………….….41,000Common stock………………………….…..20,000Retained earnings………………………….….. 9,000
What will be an ideal response?
Bruce Rankin owns real estate in rural Platt County, Illinois, that is zoned for agricultural use. He has lived there since 1959 and operates a business from his house known as Williams Trigger Specialties. Rankin, a federally registered gunsmith, works
on firearm firing mechanisms. ?Also located on the property, which has also been there since 1959, is a firing range. Rankin allows his friends to use the firing range in addition to using it himself. He does not permit strangers to use it. In the last several years, he has also permitted various law-enforcement agencies to use the range for training, practice, and qualification. The Champaign Police Department Strategic Weapons and Tactics (SWAT) team, consisting of 12 people, has used the range 10 to 15 times in the last year. Rankin has never charged a fee for use of the range. He has, however, considered putting his range to commercial use at some time in the future. Rankin is almost always present when the range is used by private individuals other than law-enforcement agencies. There has never been an injury or near injury or complaint to Rankin about the range or its use. The Kolstads and Hayses lived with the noise from the gunshots, but on October 4, 1988, they became alarmed when the new noise of rapid short bursts of gunfire sounded. Kolstad recognized the noise as the firing of automatic weapons. Both neighbors became concerned about their safety and filed suit for an injunction to halt the use of the property as a firing range. Should the court issue an injunction? Should it be an absolute prohibition on operation of the range or something less?
Norms are
A. informal codes of conduct among employees in a particular company. B. detailed instructions about how to perform a certain aspect of a task. C. specified actions to be taken under different circumstances to achieve specific company goals. D. mandatory instructions that must be followed by all employees of a company. E. written instructions about desired behavior in the workplace.