Which of the following was the result on appeal in J-Mart Jewelry Outlets Inc.,v.Standard Design,the case in the textbook in which a creditor of a defunct corporation sued the major shareholder seeking to pierce the corporate veil and hold the shareholder personally responsible for corporate debts after the shareholder paid off his personal credit cards using corporate funds and paid the corporation $1 for a new Cadillac?

A) That insufficient evidence existed that the shareholder controlled the corporation,and that the corporate veil could not be pierced.
B) That the corporate veil could not be pierced because the shareholder was not also an inside director.
C) That the corporate veil could not be pierced because the shareholder was not either an insider or outside director.
D) That the corporate veil could be pierced,and that evidence supported abuse of the corporate form.
E) That because of the unfairness involved,the corporate veil could be pierced regardless of whether evidence of abuse of the corporate form existed.

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Akashdeep singh · Accepted Answer

Final Answer : D, Explanation :  The Court of Appeals of Georgia ruled that in order for the veil to be pierced there must be evidence of abuse of the corporate form,and that the jury's verdict against the shareholder was proper.

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