Book Opener

In each case that follows, you be the judge.29. Choosing a Corporate NameLegal Aid Services, Inc. was incorporated as a nonprofit organization providing free legalservices. Four years later, American Legal Aid, Inc. was incorporated as a for-profit legalinsurance corporation selling memberships to subscribers. When American Legal Aid began anextensive selling campaign, Legal Aid Services discovered that many people were confusing thetwo entities. The confusion hurt Legal Aid Services’ image and threatened its funding.Consequently, Legal Aid Services sought an injunction prohibiting American Legal Aid fromusing the words legal aid in its corporate name. Should Legal Aid Services be granted theinjunction? Why or why not?American Legal Aid, Inc. v. Legal Aid Services, Inc., 503 P.2d 1201 (WY).30. Personal AssetsIn his role as a promoter for a new business, Spence purchased an employment agency fromHuffman. The new corporation never generated enough money to pay Huffman. As a result,Huffman elected to sue Spence directly to obtain payment. Spence argued that his personalassets should not be placed at risk. Was Spence correct? Why or why not?Spence v. Huffman, 486 P.2d 211 (AZ).Bankruptcy OptionsIn our competitive, free-market system, somebusinesses are successful, while others are not.Sometimes businesses are dissolved because theirowners are no longer interested or the market for itsgoods no longer exists. In other cases, a businesscannot survive for financial reasons and goesbankrupt.ConnectUsing a variety of search engines, comparebankruptcy and dissolution options for differenttypes of business organizations. Then answer thefollowing questions.31. What are some of the different kinds ofbankruptcy, and in what ways do they apply ornot apply to the different types of businesses?32. Does bankruptcy always cause a business todissolve? Explain your answer.33. Predict Why do you think 90 percent of allbusiness in the United States is done bycorporations?34. Connect Do you own stock in a corporation?If so, what is the name of the corporationin which you own stock?35. Question Can you explain the differencebetween public and private corporations?36. Respond Explain the doctrine known as“piercing the corporate veil.”Chapter 28: Forming and Financing a Corporation 623