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kiwipitts4856
23.12.2021 •
Business
Sal is the President and CEO of Cal College Prep., Inc., a corporation in the business of providing college admission counseling for high school students and their families. He is neither a director nor a shareholder of the company. As it turns out, Sal was receiving thousands (if not millions) of dollars from wealthy clients in order to get their children into elite colleges. In order to accomplish this, Sal was falsifying his client's athletic achievements and paying off college coaches to ensure their admission as college athletes. He was also bribing SAT proctors to change his clients answers to ensure a higher score. When Sal is sued personally, he claims that he cannot be sued personally for his actions:
a. As an officer, Sal will be protected by the business judgment rule and will not be personally liable for his actions.
b. Sal will not be protected by the business judgment rule and may be personally liable for his actions.
c. Sal may be liable if the court pierces the corporate veil.
d. Only the corporation, not Sal, will be liable for Sal's actions.
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