Question: Sally Leiner was the sole shareholder director and president of

Sally Leiner was the sole shareholder, director, and president of Ecco Bella, Inc., a New Jersey corporation.
On various occasions, African Bio-Botanica, Inc., sold Leiner and/or Ecco Bella merchandise. African gave little thought to the party with whom it was dealing. Initially, its records listed Sally Leiner as the customer; later, this was changed to Ecco Bella, but without any indication that Ecco Bella was a corporation. The checks with which Leiner paid for her orders and her firm's stationery bore the name Ecco Bella, but likewise did not indicate that the firm was a corporation. Eventually, Leiner did not pay for a shipment from African, and African sued her personally for damages in a New Jersey trial court. Leiner's defense was that only the corporation, and not herself personally, was liable. Is Leiner correct?

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  • CreatedJuly 16, 2014
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