LAW 4002 Business & Family Law

Ted’s Fruit Wholesalers sold several hundred pounds of fruit to Caroline’s Cider House Ltd.  After several months, Caroline’s had still not made payment on its purchases.  Caroline’s, did not dispute its liability.  Caroline, “the controlling mind, sole officer, and director,” explained that Caroline’s simply could not pay the bill.  Caroline claimed that Ted’s contract was with Caroline’s Cider House Ltd. And not Caroline.

1. Review the case E.M. Plastics v. Abby Signs and Lardeur, 2009 BCPC 18 (CanLii.), which is included with your materials for this assignment.  After reading the case, answer the following question:

Is Ted’s Fruit Wholesalers v. Caroline’s Cider House Ltd.,  a case in which the Court would pierce the corporate veil?  Your answer is to be one or two paragraphs in length, and you should demonstrate that you understand the reasoning of the court in E.M. Plastics.  As well, your answer should be supported by one other resource, which must be a Commercial or Business Law Textbook.

2. Under what circumstances would Caroline be liable for the debts of Caroline’s Cider House Ltd.?  Would there be a difference in terms of liability if the business was structured as a sole proprietorship or as a general partnership?  Your answer should be one or two paragraphs in length and it must be supported by a Commercial or Business Law Textbook.