Keenan and Justin open their business and find a cream cheese supplier, Bosa Dairy, Inc. Their...

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Keenan and Justin open their business and find a cream cheese supplier, Bosa Dairy, Inc. Their relationship with Bosa Dairy, Inc. is great at first; the cream cheese is of good quality and is delivered according to their contract. However, after a few months, Bosa Dairy, Inc. starts providing deliveries later and later and is eventually unable to deliver any cream cheese at all. Unfortunately, Keenan and Justin have already paid Bosa Dairy, Inc. for the cream cheese that has not been delivered. Bosa Dairy, Inc. is incorporated as a C corporation with Joey Bosa and his wife as the sole shareholders and the directors and officers of the corporation. Joey and his wife have held two annual meetings over the last eight years and do not keep current minutes for the corporation. Bosa Dairy, Inc.'s bank account rarely has a positive balance, most of the corporation's expenses are paid from Joey and his wife's personal bank account, and the corporation owns no assets because all assets are held in Joey and his wife's names. Keenan and Justin file a lawsuit for breach of contract against Bosa Dairy, Inc., and against Joey Bosa and his wife as individuals. In terms of liability for business owners, do you think Keenan and Justin will be successful holding Joey Bosa and his wife personally liable? Why or why not? Keenan and Justin open their business and find a cream cheese supplier, Bosa Dairy, Inc. Their relationship with Bosa Dairy, Inc. is great at first; the cream cheese is of good quality and is delivered according to their contract. However, after a few months, Bosa Dairy, Inc. starts providing deliveries later and later and is eventually unable to deliver any cream cheese at all. Unfortunately, Keenan and Justin have already paid Bosa Dairy, Inc. for the cream cheese that has not been delivered. Bosa Dairy, Inc. is incorporated as a C corporation with Joey Bosa and his wife as the sole shareholders and the directors and officers of the corporation. Joey and his wife have held two annual meetings over the last eight years and do not keep current minutes for the corporation. Bosa Dairy, Inc.'s bank account rarely has a positive balance, most of the corporation's expenses are paid from Joey and his wife's personal bank account, and the corporation owns no assets because all assets are held in Joey and his wife's names. Keenan and Justin file a lawsuit for breach of contract against Bosa Dairy, Inc., and against Joey Bosa and his wife as individuals. In terms of liability for business owners, do you think Keenan and Justin will be successful holding Joey Bosa and his wife personally liable? Why or why not?

Answer rating: 100% (QA)

The detailed answer for the above question is provided below Yes Explanation Keenan and Justin may h... View the full answer