Reference no: EM133527784

Assignment:

Review the case from the end of (p. 389 in the "Real Law" section) in your textbook:

"Lester Fulmer sold H2O Lifts and Ramps, LLC (H2O), to Hurt-Hoover Investments, LLC (HHI). HHI agreed to pay $550,000 of the price by a note in thirty-six installments. From the installments, HHI deducted offsets, including charges for expenses incurred before the sale. Meanwhile, HHI incurred annual losses. Its owners, William Hurt and Michael Hoover, contributed funds to keep the firm in business. They followed the statutory business formalities. To collect on the note, Fulmer obtained a judgment in an Arkansas state court against HHI for the unpaid amount. Hurt and Hoover did not dissolve HHI or form another entity to avoid the judgment but offered to pay it when the profits from H2O became sufficient."

Should HHI's corporate veil be pierced to hold Hurt and Hoover liable?

• In the first paragraph of your post, explain why a court would agree HHI's corporate veil should be pierced to hold Hurt and Hoover liable.
• In the second paragraph of your post, explain why a court would not agree HHI's corporate veil should be pierced to hold Hurt and Hoover liable.
• In your third paragraph, state whom you believe should win this case and explain your decision.

For your peer responses, extend your exploration of the issues involved in the case and its conclusion.

• At least one of your peer responses should address the court's decision.
• You can offer an extension or elaboration on your peer's initial posting and/or the case decision, or you can present an alternate point of view that demonstrates a new perspective about the case.