Critical thinking and the ethics cases Ch.16 – Flashcards

-A Vehicle driven by Michael O'Niell crashed wile traveling on Louisiana Highway 30 -Vanessa Savoy a 19 year old passenger sustained server injuries -O'Neil who is under the drinking age had been drinking at Fred's Bar and Grill prior to the accident -Vanessa sued O'Neil and Fraioli

The court held that Fraioli was not personally liable for the debts of the Triumvirate corp because as a shareholder he has limited liability

-Local farmers in Manchester, Iowa, decided to build an Ethanol plant. -The farmers and other investors invested $3,865,000 and formed Northeast Iowa ethanol LLC -The project needed $20 million more -Jerry Drizin formed Global Sydicate to help raise money -Drizin used these company to steall NIE LLC funds -Sued by NIE LLC

The plaintiffs were able to obtain a money judgment against Drizin personally for civil fraud

-Joseph M. Billy was an employee of the USM Corp -Billy was at work when a 4,600 pound ram crushed him to death -Billy's widow sued claiming defects in the machine caused hes death

-The shareholders of USM Corp cannot be held personally liable because as shareholders they have limited liability

-Leo V. Mysels was the president of Florida Fashions of Interior Design -Was a Pennsylvania corp -Never registered in the state of Florida -Francis E. Barry sued Florida Fashions when it failed to perform its obligations

-The trial court judgement finding that the defendant Mysels was personally liable was reversed on appeal largely due to a technicality which under Florida law agency existed with the defendant corporation and Defendants Mysels

-Lawrence Gaffney was the president and general manager of Ideal Tape Company -Gaffney and 3 others used their position at Ideal to travel around the country to gather business information while planning to open a competing business

The plaintiffs were able to recover significant money damages from gaffney and the other individuals which included cost of hiring replacement employees and other cost

-Edward Hellenbrand ran a comedy club know as the comedy cottage -The business was incorp with hellenbrand and his wife as sole shareholders -The corporation leased the property in which the club was located -Hired Jay Berk as a general manager -later promoted to vice president and given 10% of stock -After the lease expired Berk renewed under his name instead of the company -Helllenbrand sued Berk for an injunction to prevent Berk from leasing the building

-Berk was found to have breached his fiduciary duty and thus the court blocked berk from operating a new club at the former premises of the comedy club

-M.R. Watters was the majority shareholder of the wildhorn Ranch, Inc. -Corp run out of his home in Rocky Ford Colorado -Had no other shareholders -Two guest drowned and their families sued Watters personally

The jury found that the corp was essentially the alter ego of Watters and assessed damages Watters personally

-Mr.Soskin owned a minor league hockey team -Creative Resource Management entered into a service contract with Mr.Soskin -Included a personal guarantee by Mr.Soskin to pay any unpaid invoice -Sued Mr.Soskin for failing to pay the contract

Soskin was found to be personally liable abd creative resource could recover debt