In which of the following scenarios is the court least likely to decide to pierce the corporate

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Question:

In which of the following scenarios is the court least likely to decide to pierce the corporate veil?

Group of answer choices

1. Stearns divided her toy manufacturing business into three divisions and incorporated each division separately. She is the sole shareholder and manager of each corporation. Corporation One buys the materials needed to manufacture toys, warehouses them, and sells the materials to Corporation Two at fair market value. Corporation Two manufactures the toys from the materials and sells the toys to retailers.

2. Corporation Three provides financing to retailers that purchase toys from Corporation Two. Each corporation maintains its own accounting records, and each corporation pays its own employees. When Corporation One was unable to pay one of its vendors, the vendor sued Stearns to collect the debt. Ames formed a corporation to manufacture athletic apparel and served as its sole officer and director. All of the stock was owned by his wife and two children. The corporation did not hold shareholder meetings and Ames often borrowed money from the corporation to pay for personal expenses and purchases. When the corporation failed to pay income tax for several years, the Internal Revenue Service sued Ames to collect the amount owed.

3. Gasparovic is the controlling shareholder of Tetra Corporation, which manufactures smoke detectors. Due to a defect in a smoke detector sold by Tetra to Rezvani, the detector malfunctioned and failed to warn of a fire that destroyed his home.

4. Rezvani sued and recovered a judgment against Tetra, but its liability insurance had lapsed and it had only $1,000 of capital on hand. Rezvani seeks to enforce the judgment against Gasparovic.

5. Adept Corporation manages Bantam Corporation, a wholly-owned subsidiary corporation. Adept transfers inventory to Bantam in exchange for less than fair market value of the merchandise. Both Adept and Bantam share the same employees, but all of the wages are paid by Adept. When Bantam defaulted on its loan obligations, its creditors sued Adept to collect on the debt.