Piercing the Corporate Veil Discussion

Assignment Instructions

Analyze Business Case 39-4, “Piercing the Corporate Veil,” located below. Prepare a professional-caliber brief on the case.

Based on the case information provided:

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  • State the facts of the case and the key issues.
  • Cite the code or statute provisions applicable to the case.
  • Determine whether the corporation has met all legal requirements to be incorporated, and explain your reasoning.
  • Express your main points, arguments, concepts, and information coherently and logically.

To support your brief:

  • Identify the legal requirements for forming a corporation, and cite relevant law.

Additional Requirements

  • Cover page: Include your name, the assignment number, and the assignment or case title.
  • Length: 1–2 double-spaced pages, not including the cover page.
  • Font and font size: Times New Roman, 12-point.
  • APA formatting: Format resources and citations according to current APA guidelines.


39–4. Piercing the Corporate Veil. Smith Services, Inc., a trucking business owned by Tony Smith, charged its fuel purchases to an account at Laker Express. When Smith Ser- vices was not paid on several contracts, it ceased doing busi- ness and was dissolved. Smith continued to provide trucking services, however, as a sole proprietor. Laker Express sought to recover Smith Services’ unpaid fuel charges, which amounted to about $35,000, from Smith. He argued that he was not personally liable for a corporate debt. Should the court pierce the corporate veil? Explain.

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