Question

Ricky forms an agriculture business with julian called TPB, LLC........ What legal strategy against the defendants might that customer use to recover his damages?

1. Veil Piercing
2. Self dealing
3. derivative lawsuit
4. go pound sand

Answer 1

A customer seeking to recover damages from TPB, LLC might use the veil-piercing strategy to hold the owners personally liable if the LLC's corporate protections were inappropriately used. Self-dealing and derivative lawsuits are not relevant strategies in this context. 'Go pound sand' is not a valid legal term.

Step-by-step explanation:

If a customer has suffered damages and is seeking to recover from TPB, LLC, the most appropriate legal strategy would likely be veil piercing (also known as piercing the corporate veil). This legal action challenges the protection that the limited liability company (LLC) structure typically provides to its owners (in this case, Ricky and Julian). If the court finds that the LLC was just an alter-ego of the owners, that they commingled personal and business assets, failed to follow corporate formalities, or engaged in fraudulent behavior, it might allow the customer to hold Ricky and Julian personally liable for the damages.

Self-dealing refers to a situation where the managers or directors of a company may have participated in transactions that benefit themselves at the company’s expense. A derivative lawsuit is a legal action brought by a shareholder on behalf of the corporation against its leaders for wrongdoing. 'Go pound sand' is an informal phrase and not a legal strategy. Considering that a customer is seeking recovery for damages, options 2 and 3 would not be relevant, and option 4 is not applicable in a legal context.

Answer 2

In recovering damages from TPB, LLC, a customer might use the veil piercing strategy, which treats the company's liabilities as those of the individuals behind it when misconduct is involved. Self-dealing and derivative lawsuit are not applicable to the customer's case. 'Go pound sand' is not a legal term.

Step-by-step explanation:

If a customer of TPB, LLC suffered damages and wished to recover them from the business, veil piercing might be a legal strategy used against the defendants. Veil piercing refers to a legal decision to treat the rights or liabilities of its members or shareholders as the rights or liabilities of the company. This is typically pursued when the members or owners have acted improperly or when the company is undercapitalized, conducted fraud, or has been used to circumvent the law.

The option of self-dealing does not apply to the customer's legal strategy; it is rather a term describing a conflict of interest in which an officer, director, or manager of a company derives a personal benefit from the actions taken by the company. Similarly, a derivative lawsuit is an action brought by a shareholder on behalf of a corporation, and go pound sand is an informal colloquialism expressing dismissal and is not a legal term or strategy.