Business Law and the Regulation of Business 11th Edition by Richard Mann, Barry Roberts

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Tender Loving Care, Inc. (TLC), a corporation owned and operated by Virginia Bryant, eventually went out of business. The Secretary of State canceled its corporate charter, and a check drawn on TLC's account made out to the Department of Human Resources (DHR) to pay state unemployment taxes was returned for insufficient funds. Subsequently, Bryant filed individually for bankruptcy, listing the DHR as a creditor. This claim was not allowed, because Bryant was held not to be personally liable on the debts of TLC to the DHR. The DHR later called Bryant to its offices, where she was told that she needed to pay the debt owed to the DHR by TLC. Unable to contact her lawyer, Bryant was persuaded to sign a personal guarantee to cover the debt. Later, when Bryant refused to pay, the DHR filed suit. Decision?