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The Legal Environment.

Read the case, Dog House Investments, LLC v. Teal Properties, Inc. Answer the following question,

 

 What was the contract and how was it breached?

The failure of Teal Properties and Jerry Teal to reimburse Dog House for the repair costs placed the tenant in a dire financial situation. Does this consequence make the landlord’s conduct unethical?

 

How might this suit have been avoided altogether?

 

Is it common for courts to disregard the corporate form of business organization and impose liability on shareholders?

 

Could an agreement between a corporation and its shareholders, or the shareholders and third parties, reduce or eliminate the limits to the liability of shareholders for corporate debts?

 

Do corporations benefit from shareholders’ limited liability?

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