If Callie Sues Min-Ji, Marcus, and Penelope for Unpaid Amounts

question 87

Multiple Choice

If Callie sues Min-ji, Marcus, and Penelope for unpaid amounts without a novation in place, what would be the most likely result?

• A) Callie would likely win because courts generally hold promoters liable and rule that preincorporation contracts do not bind the new corporation.
• B) Callie would likely win unless it can be established that the new corporation is making a profit and is able to pay her.
• C) Callie would likely win unless it can be established that the new corporation was capitalized with at least $100,000 and is able to pay her.
• D) Min-ji, Marcus, and Penelope will win so long as they can prove that Callie knew that the feed was purchased for a new corporation and not for their personal farm use.
• E) Min-ji, Marcus, and Penelope will win unless they have already paid partial amounts leading Callie to expect that they, not the corporation, had accepted liability.

---

Definitions:

Constitutionality

Refers to whether a law or governmental action is in accordance with the Constitution.

Stare Decisis

A legal principle that obligates courts to follow the precedents set by previous decisions in similar cases.

Jurisprudence

The study or theory of law aimed at understanding the origins, principles, and structures of legal systems and their impact on society.

Universal Truths

Fundamental concepts or facts that are considered true and apply in all situations and cultures.