Mark Complied with All Formation Requirements for Incorporating His Taxicab

question 69

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 a pedestrian in a crosswalk. The pedestrian sues both Mark and the taxi company for $100,000. The corporate assets are only $32,000. Is the corporation liable for the acts of its employee? Will Mark be personally liable under the facts? Explain.

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Definitions:

McClure's Magazine

A historic American magazine known for its investigative journalism and role in the early 20th-century muckraking movement.

Muckraking Journalists

Refers to investigative journalists in the early 20th century who exposed societal corruptions, scandals, and injustices, often leading to public outrage and reform.

Mexican Immigrants

Individuals from Mexico who move to another country, often for better economic opportunities or to escape violence, significantly contributing to cultural and demographic changes in their new communities.

Early Twentieth Century

A period from 1901 to 1945 characterized by rapid industrialization, social changes, World War I, the Great Depression, and the beginning of World War II.