The Flying Saucer Restaurant leased their premises to Licks Leasing Ltd., who in turn sublet to a

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The Flying Saucer Restaurant leased their premises to Lick’s Leasing Ltd., who in turn sublet to a tenant who left without paying. The plaintiff then looked to Lick’s Leasing for compensation as per the lease, but Lick’s had no assets and paid nothing. In this action the Flying Saucer Restaurant is seeking the rent owed from the principal of Lick’s leasing, Mrs. Meehan, as well as from several related companies. Explain the arguments for each party. Would it affect your answer if Mrs. Meehan had made a personal guarantee for the rent? What if that guarantee was verbal? What if she had made a misrepresentation? What if the other related corporations were successful, had funds, and were owned by the same people?

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