Chapter 16, Problem 20CP

William Carlton was the sole shareholder in ten New York City corporations, including Seon Cab Corporation.  Each corporation owned two taxicabs, and each cab was covered by the minimum $10,000.00 automobile liability insurance required under New York State law.  A taxicab owned by Seon Cab Corporation struck and severely injured John Walkovsky, who sued for damages.  Walkovsky named all ten corporations, Carlton individually, as well as the individual driving the cab that hit him, as defendants.  The plaintiff alleged that the corporations, although seemingly independent of one another, operate as a single entity, unit and enterprise with regard to financing, supplies, repairs, employees, and garaging.  The plaintiff asserted that the multiple corporate structure constituted an unlawful attempt to defraud members of the general public who might be injured by the cabs.  He sought to hold Carlton, the sole shareholder of each corporation, personally liable for his injuries. 1.  Is there…

Morris, a salesperson for Acme, Inc., a manufacturer of household appliances, receives a commission on all sales made and no further compensation. He drives his own automobile, pays his own expenses, and calls on whom he pleases. While driving to make a call on a potential customer, Morris negligently collides with Hudson, who sues (a) Acme and (b) Morris. Who should be held liable?

Michelle Vinson was an employee of Meritor Savings Bank for approximately four years. Beginning as a tellertrainee, she ultimately advanced to the position of assistant branch manager. Her promotions were based solely upon merit. Sidney Taylor, a vice president of the bank and manager of the branch office in which Vinson worked, was Vinson’s supervisor throughout her employment with the bank. After the bank fired Vinson for her abusive use of sick leave, Vinson brought an action against Taylor and the bank, alleging that during her employment, she had “constantly been subjected to sexual harassment” by Taylor in violation of Title VII of the Civil Rights Act of 1964. Vinson stated that Taylor repeatedly demanded sexual favors from her, fondled her in front of other employees, and forcibly raped her on a number of occasions. Taylor and the bank categorically denied Vinson’s allegations. Does the conduct constitute sexual harassment? Explain.