Here are my questions, please answer them using your own words at least 6-7 lines. Please and THANK YOU

1) What reasons could there be for Fraioli to operate his business as a corporation rather than as a sole proprietorship?

2) Was it ethical to assert the corporate shield to avoid liability in this case?

ties Law 359 we mans wat CHAPTER 16 Corporations and Corporate Governance wareholders, ma Exhibit 16.1 CORPORATION Walmartine Inc. and Alpha Debtor obligation owed Corporation Third Party the other hand, w shareholders e privately held Capital investment Share holder Share holder Share- holder Share Wider holder nson, A Family sployees to as a benefit -profit corpora 3 corporation's omoting social -, and the like. mine and cer Liability limited to capital contribution No personal liability for company's debts and obligations c.: Etsy Inc: orations that ses. Although by law from + mareholders enerally, the s means that oration, that do not have egal entities, 1). Contributes . One year State Bank CASE 16.1 STATE COURT CASE Shareholder's Limited Liability Menendez v. O'Niell 986 So.2d 255 (2008) Court of Appeal of Louisiana "As a general rule, a corporation is a distinct legal that Fraioli was liable as the owner of Triumvirate entity, separate from the individuals who comprise corporation them, and individual shareholders are not liable for Fraioli filed a motion for summary judgment assert the debts of the corporation." ing that as the shareholder of Triumvirate corporation Welch, Judge he was not liable for the corporation's debts. The trial court granted summary judgment to Fraioli and dis- missed him as a defendant in the case. Savoy appealed. Facts A vehicle driven by Michael O'Niell crashed while traveling on Louisiana Highway 30, Vanessa Savoy, a Issue 19-year-old guest passenger in the vehicle, sustained is Fraioli personally liable for the debts of Triumvirate, severe injuries as a result of the collision. O'Niell, who a corporation of which he is the sole shareholder ? was under the legal drinking age, had been drinking at Fred's Bar and Grill prior to the accident. Fred's Language of the Court Bar is owned by Triumvirate of Baton Rouge, Inc., As a general rule, a corporation is a distinct a corporation. Maro Praioli is the sole shareholder legal entity, separate from the individuals toho and president of Triumvirate corporation. Fraioli was comprise them, and individual shareholders not at Fred's Bar the night that O'Niell was served are not liable for the debts of the corporation uleohol at the bar. Savoy, through a legal representa- Mr. Fraioli met his burden of proving Trium- tive, brought a lawsuit against O'Niell, O'Niell's auto- birates corporate existence. Plainti failed to mobile insurance company, Triumvirate corporation, offer any evidence identified by law as indicia and Fraioli seeking damages for her injuries. Savoy that Mr. Fraioli and Triumvirate are not actu- alleged that O'Niell was intoxicated at the time of the ally separate entities. The incoloement of a sole accident and that his drinking caused the collision or majority shareholder in a corporation is non Savoy alleged that Triumvirate corporation was liable sufficient alone, as a matter of late, to establish for serving O'Niell alcohol when he was underage and a basis for disregarding the corporate entity, vers. Tina atribution nally liable liability of 1. . (continued) tion must edure for rocedure 360 PART IV Business Organizations, Partnerships, Corporations, Companies, and Securities Law Decision The court of appeal held that Fraioli was not personally liable for the debts of the Triumvirate corporation of which he was the sole shareholder. The court of appeal affirmed the trial court's grant of summary judgment dismissing Fraioli from the case. Critical Legal Thinking Questions What reasons could there be for Fraloll to operate his business as a corporation rather than as a sole proprietorship? Was it ethical for Fraioll to assert the corporate shield to avoid liability in this case