Mark Complied with All Formation Requirements for Incorporating His Taxicab

question 68

Essay

Mark complied with all formation requirements for incorporating his taxicab business. He is the sole shareholder in the corporation. The corporation owns two automobiles that Mark frequently uses for his own personal use. In addition, he sometimes deposits the money he takes in during the day into his personal checking account. One day, an employee of the company, while driving one of the company vehicles, accidentally hits Peter, a pedestrian, in a crosswalk. Peter sues both Mark and the Taxi Company for $100,000. The corporate assets are only $32,000.
a. Is the corporation liable for the acts of its employee? Explain.
b. Will Mark be personally liable under the facts? Why? Explain.

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Definitions:

Bulimia

A psychological eating disorder characterized by recurrent binge eating followed by compensatory behaviors such as purging.

Purging Behavior

Engaging in behaviors such as vomiting or misuse of laxatives to rid the body of food and calories, typically associated with eating disorders like bulimia nervosa.

Sexual Abuse

Any unwanted sexual activity forced upon one individual by another.

Drug Addiction

A chronic disorder characterized by the compulsive use of drugs, leading to severe physical or psychological dependence.