Prithy wants to go into business providing classroom instruction and tutoring for students taking the LSAT . She wants to call it ' The Prithy Review...
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4)

Prithy wants to go into business providing classroom instruction and tutoring for students taking the LSAT. She wants to call it “The Prithy Review.”

She seeks legal advice about what business form she should use and decides to incorporate. Before she gets a chance to file the documents with the Secretary of State, she learns about a great deal for a lease on office space, and that she must sign the lease immediately if she doesn’t want to lose it. On Nov. 1 she entered into a 5 year lease, and signed it “Prithy Prina, President, The Prithy Review, Inc., a Delaware corporation.” On Nov. 8 she incorporates the business as a California corporation. The business has been losing money and six months later, The Prithy Review, can no longer afford to pay rent. If the landlord sues for breach of contract, which of the following statements is true:a)The court will pierce the corporate veil to hold Prithy liable.b)The court will hold Prithy personally liable since The Prithy Review was defectively incorporated.c)Both The Prithy Review and Prithy, individually, may be held liable.d)Only The Prithy Review would be held liable because of the limited liability protection ofcorporations.e)None of the above.
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Uploaded by: arielmazor8

Subject: Other Subjects

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