Cengage Advantage Books: Law for Business 18th Edition by John Ashcroft ,Janet Ashcroft

تمرين 4

Jackson Paper Manufacturing Company (Jackson) used recycled materials to make medium paper that was used to make cardboard. It supplied Stonewall Packaging, LLC (Stonewall) with paper, and Stonewall made cardboard. Stonewall did not buy paper from Jackson until it was actually used in making cardboard. Best Cartage Inc. (Best) was a trucking company that had an exclusive transportation contract with Stonewall. However, Jackson negotiated the terms of the contract and signed on behalf of Stonewall. It used the services of Jackson and its employees without reimbursement; Jackson bought the realty on which Stonewall was located; Jackson hired the employees and renovated the building in which Stonewall operated; and they shared common officers and directors. After Stonewall was put in receivership, Jackson retrieved paper from Stonewall since it had supplied it on consignment. Best sued both Stonewall and Jackson for breach of contract rather than making a claim in the receivership. It claimed that Jackson used Stonewall as a shell to insulate itself from potential claims of creditors and that the consignment arrangement constituted wrongdoing. Should Best prevail?