Business law Arthur King is the CEO of Camelot, Inc. a...
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Accounting
Business law
Arthur King is the CEO of Camelot, Inc. a close corporation. He is the majority shareholder in the corporation. He knows that 2 lawsuits are about to be filed against Camelot. One pertains to an alleged breach of contract to which Camelot was a party. King had been actively involved in the terms of the contract. The other suit that will be filed against Camelot relates to an automobile accident allegedly caused by the negigence of Lance Allot, a Camelot employee. Allot was acting within the scope of his employment when the accident occurred. King is concemed that he could face personal liability for damages that may be awarded in these suits Should he be concemed? Why or Why not? a. Yes. He is the majonty shareholder in the corporation and tdook part in negotiating the contract b. No. Camelot, Inc. is a corporation, albeit a close corporation and shareholders are generally shielded from parsonal liability resulting from the corporation's acts c. Yes. The courts will plerce the corporate veil and hold him totally resporisible d. Yes. He will be held liable under the doctrine of Respondeat Superior
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