Claire opened Claire's Beauty Parlor in her home. She solicited funds to begin the business from Jack, who believed that the business was incorporated. Claire had, in fact, never filed the papers. One day, Claire fell asleep while giving a customer a perm and the solution caused her customer severe burns. The customer sued the Beauty Parlor for $500,000, an amount enormously in excess of the
business assets. Under the Revised Model Act, what would be the result?
a. Claire and Jack would not be personally liable.
b. Claire would not be personally liable, but Jack would.
c. Jack would not be personally liable, but Claire would.
d. Both would be personally liable since there was no corporation formed.
c
You might also like to view...
A new claim stating that plaintiff owes defendant damages because of harm resulting from the incident alleged in the complaint is called a(n) ________.
A. affirmative defense B. counterclaim C. dissenting opinion D. cross-claim
Describe two tests that an auditor would perform to ensure that the disaster recovery plan is adequate
Identify and discuss several ways to build, maintain or repair credibility
What will be an ideal response?
In which of the following gaps of the Gap Model of Service Quality can a lack of the right customer data wreak havoc on service delivery?
A. Gap 1: management's perceptions of customer service expectations versus actual customer expectations of service B. Gap 2: management's perceptions of customer service expectations versus the actual service quality specifications developed C. Gap 3: actual service quality specifications versus actual service delivery D. Gap 4: actual service delivery versus what the firm communicates it delivers E. Gap 5: perceived service by customers versus actual customer expectations of service