Assume that Laverne and Shirley prepare articles of incorporation but forget to send the articles to the appropriate state office. A few months after they begin to operate their consulting business as a corporation,Laverne visits a client. After her meeting, in driving out of a parking lot,Laverne inadvertently backs her car over the client, causing serious bodily harm. Is Shirley liable for the accident? Why?
Articles of incorporation is important to legally recognize a corporation as it incorporate the documents under state government. The article of incorporation includes information such as company's name, type of stock, street address etc. So, here, in this case although Laverne and Shirley had prepared articles of incorporation, but they failed to send those documents to the state office. And thus from the legal point of view, Laverne and Shirley donot form a corporation as the consulting business corporation is yet to be legally established. So, although both Laverne and Shirley are partners but Shirley wouldn't be liable for the accident as they are not partners legally. Hence, only Laverne would be liable for the accident and serious harm and not Shirley.
Hope this helps :)
Assume that Laverne and Shirley prepare articles of incorporation but forget to send the articles to the appropriate state office. A few months after they begin to operate their consulting business as...
Please read the article and answer about questions. You and the Law Business and law are inseparable. For B-Money, the two predictably merged when he was negotiat- ing a deal for his tracks. At other times, the merger is unpredictable, like when your business faces an unexpected auto accident, product recall, or government regulation change. In either type of situation, when business owners know the law, they can better protect themselves and sometimes even avoid the problems completely. This chapter...