add more relevant law and law sections. Also add relevant case law.

Issue:

Are Morris, Jordan, and AeroTech Solutions Pty Ltd liable to pay compensation on the defective products that were formerly manufactured and sold by AeroCraft Pty Ltd?

Law:

Under the principal of corporate personality, a company is known as a separate legal entity from its shareholders. Nevertheless, in specific circumstances the courts can disregard the corporate veil, that involve activities that are fraudulent or where it is required to prevent injustice. The case of Salomon v A Salomon & Co Ltd determined the foundational principal of corporate personality.

Application:

The invention of AeroTech Solutions Pty Ltd by Morris and Jordan as well as the transfer from AeroCraft Pty Ltd to the new entity suggest an attempt to limit liability by avoiding themselves from the possibility of legal consequences for defective products. Nevertheless, the mere invention of a new company doesn't necessarily absolve the original company or its directors of existing liabilities.

The courts could apply the doctrine of cutting the corporate veil if evidence is found for fraudulent intent or trying to escape legal responsibilities. If they find that AeroCraft Pty Ltd has intentionally manufactured and sold defective products, the directors could be held by the court for being personally liable for the actions of AeroCraft Pty Ltd.

Furthermore, in the consumer protection laws, if products are defective, customers could obtain compensation. Customers can also take legal action and obtain compensation against AeroCraft Pty Ltd if they find them liable.

Conclusion:

If there is evidence of fraudulent conduct or trying to escape legal responsibilities, Morris, Jordan, and AeroTech Solutions Pty Ltd will be at risk of being held liable for compensation. Customers of AeroCraft Pty Ltd could have justifications to engage in legal action against the original company for their defective products, the court could analyse the actions of the directors as well as the new entity.