This topic contains a solution. Click here to go to the answer

Author Question: Disregarding the Corporate Entity. Steven and Janis Gimbert leased a warehouse to a manufacturing ... (Read 66 times)

Mr.Thesaxman

  • Hero Member
  • *****
  • Posts: 514
Disregarding the Corporate Entity. Steven and Janis Gimbert leased a warehouse to a manufacturing business owned by Manzar Zuberi. Zuberi signed the lease as the purported representative of ATM Manufacturing, Inc, which was a nonexistent corporation. Zuberi was actually the president of two existing corporations, ATM Enterprises, Inc, and Ameri-Pak International. Under the Ameri-Pak name, Zuberi manufactured a household cleaning product in the Gimberts' warehouse. The hydrochloric acid used in the operations severely damaged the premises, and the Gimberts filed a suit in a Georgia state court against Zuberi personally to collect for the damage. On what basis might Zuberi be held personally liable? Discuss fully.

Question 2

The death of a principal would affect the validity of contracts then made by the agent for the principal.
 a. True
  b. False
  Indicate whether the statement is true or false



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

ecox1012

  • Sr. Member
  • ****
  • Posts: 344
Answer to Question 1

Disregarding the corporate entity
The court found Ameri Pak International responsible for the damage and held Zuberi per-sonally liable. The court reasoned that Zuberi knowingly signed the lease with the Gimberts as the representative of a nonexistent corporation. Zuberi appealed, and the state intermediate appellate court affirmed the lower court's holding. The appellate court emphasized that Zuberi signed the lease under the name of a nonexistent corporation. Under state statutes, this made him personally liable for all liabilities created while he purported to act as, or for, the corporation. Because Zuberi entered the lease on behalf of a company that did not exist, the trial court could find he was personally bound by the lease, and by any extensions of that lease beyond the original one year period, so long as a business he operated occupied the premises.

Answer to Question 2

TRUE




Mr.Thesaxman

  • Member
  • Posts: 514
Reply 2 on: Jun 24, 2018
YES! Correct, THANKS for helping me on my review


nanny

  • Member
  • Posts: 313
Reply 3 on: Yesterday
Excellent

 

Did you know?

There are approximately 3 million unintended pregnancies in the United States each year.

Did you know?

Signs and symptoms of a drug overdose include losing consciousness, fever or sweating, breathing problems, abnormal pulse, and changes in skin color.

Did you know?

The top 10 most important tips that will help you grow old gracefully include (1) quit smoking, (2) keep your weight down, (3) take supplements, (4) skip a meal each day or fast 1 day per week, (5) get a pet, (6) get medical help for chronic pain, (7) walk regularly, (8) reduce arguments, (9) put live plants in your living space, and (10) do some weight training.

Did you know?

Historic treatments for rheumatoid arthritis have included gold salts, acupuncture, a diet consisting of apples or rhubarb, nutmeg, nettles, bee venom, bracelets made of copper, prayer, rest, tooth extractions, fasting, honey, vitamins, insulin, snow collected on Christmas, magnets, and electric convulsion therapy.

Did you know?

Vampire bats have a natural anticoagulant in their saliva that permits continuous bleeding after they painlessly open a wound with their incisors. This capillary blood does not cause any significant blood loss to their victims.

For a complete list of videos, visit our video library