Which of the Following Is the Reason Why Alter Ego

question 75

Multiple Choice

Which of the following is the reason why alter ego companies come under the purview of piercing the company veil?

• A) because the company has no decision-making power independent of its parent company
• B) because the company had insufficient capital when being formed
• C) because the shareholders use company assets for personal benefit
• D) because the shareholders of that company assumes personal liability

---

Definitions:

Enforceable Offer

A proposal made in a contract that is legally binding and can be enforced in a court of law, provided it meets all the required conditions.

Restatements of the Law

A set of treatises published by the American Law Institute, articulating the principals of common law in the United States.

CISG

The United Nations Convention on Contracts for the International Sale of Goods, a treaty that establishes a uniform legal framework for international commerce.

Conforming Goods

Products that meet the specifications and standards outlined in a contract of sale.