Posted: September 2nd, 2022

Week 3 Discussion

Week 3 Discussion
Description

One of many distinct benefits provided to the homeowners of companies is restricted legal responsibility. Whereas one might argue whether or not “companies are individuals,” it’s inarguable that companies are entities distinct from their homeowners.

However this distinction, there are circumstances the place courts will ignore or blur this distinction. Consequently, particular person homeowners of companies might discover themselves personally liable to 3rd events for the actions of the company, thereby destroying the safety of restricted legal responsibility. This idea is named “piercing the company veil.” Although there’s a distinction, there are occasions when courts will ignore or blur this distinction. Due to this, the homeowners of a company could also be held personally accountable by third events for the actions of the company. This makes restricted legal responsibility ineffective. This idea is named “piercing the company veil.”a

Discussion Discussion board Immediate:

Your job is to debate the next:

(i) ought to restricted legal responsibility ever be prolonged to shareholders of companies, or is the regulation relevant to partnerships (companions are personally accountable for the acts of the partnership) a greater strategy?;

(ii) why do courts distinguish between breaches in tort and breaches in contract when figuring out whether or not the company veil ought to be pierced, and do you agree that that is an applicable distinction?;

(iii) how, if in any respect, would you modify the strategy to imposing legal responsibility on homeowners for obligations owed by the company?

Necessities: 450 phrases

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