Question

A court will disregard the corporate form and ________ the corporate _________ in five circumstances: first, if a party is _________ into dealing with the corporation rather than the individual; second, if the corporation is set up to always be __________ or is _________ capitalized; third, if the corporation is formed to _________ an existing legal obligation; fourth, if the corporation fails to follow the statutory corporate _________ ; and fifth, if the personal and corporate interests are _________ so that the corporation has no separate identity.
Fill in the blanks with words that would best complete the passage.
thinly
evade
insolvent
commingled
fulfill
solidify
convinced
over
identical
timelines
form
profitable
veil
tricked
formalities
pierce

Answer 1

Explanation:

A court will disregard the corporate form and pierce the corporate veil in five circumstances: first, if a party is tricked into dealing with the corporation rather than the individual; second, if the corporation is set up to always be insolvent or is thinly capitalized; third, if the corporation is formed to evade an existing legal obligation; fourth, if the corporation fails to follow the statutory corporate formalities ; and fifth, if the personal and corporate interests are commingled so that the corporation has no separate identity.