Art Unlimited was a corporation created by Lila Larcon to sell to hotels the works of many different artists. Stanford Beech was one of the artists contracted by the corporation to make a certain number of paintings within a six-month period. Beech completed and delivered his paintings according to the contract. However, he never received payment due to the gross undercapitalization of the corporation. Beech sued Larcon, who raised the defense that Beech's contract was with the corporation, not with her. Larcon owned 100 percent of the stock of two related corporations: Art Supplies and The Artists' Haven. The funds of the three corporations had been handled in disregard of the separate identity of Art Unlimited. Could Larcon be held personally liable for Beech's contractual fee? Explain.

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Lila Larcon as the owner of the corporations involved could potentially be held personally liable for Beech s contractual fee under the legal concept View the full answer