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:

Exclusionary Rule

The Exclusionary Rule is a legal principle in the United States that prevents evidence collected in violation of the defendant's constitutional rights from being used in a court of law.

Permissible Searches

Searches allowed by law, particularly under the Fourth Amendment of the U.S. Constitution, which guards against unreasonable searches and seizures.

New Technology

Refers to the latest advancements and innovations in various fields like information technology, biotechnology, and engineering.

Confederal

A form of government where various states or entities join together for common purposes but maintain substantial independence and sovereignty.