TAKING SIDES Stuart Studio, an art studio, prepared a new catalog for the stock and 49 percent of its nonvoting stock. The school National School of Heavy Equipment, a school run by Gilbert became bankrupt, and Stuart Studio was unable to recover the and Donald Shaw. When the artwork was virtually finished, sum from the school. Stuart Studio then brought an action Gilbert Shaw requested Stuart Studio to purchase and super- against Shaw on the basis of his promise to pay the bill. vise the printing of twenty-five thousand catalogs. Shaw told a. What are the arguments that Shaw is not liable on his the art studio that payment of the printing costs would be promise? made within ten days after billing and that if the National School would not pay the full total that he would stand good b. What are the arguments that Shaw is liable on his for the entire bill. Shaw was chairman of the board of direc- promise? tors of the school, and he owned 100 percent of its voting c. Is Shaw obligated to pay the debt in question? Explain