If a corporation is sued for selling unsafe products and loses the suit and is held liable, who or what is responsible for the debt?

Question

Quizplus · Accepted Answer

As a legally defined entity, the corporation is responsible for any debts or liabilities it incurs. The shareholders are not personally liable for the corporation's debts, unless a court pierces the corporate veil and holds them personally liable. The managers may be held responsible for their individual actions, but the corporation as a whole is responsible for any product defects or safety issues. The percentage of ownership of shareholders is not relevant in this situation.

If a Corporation Is Sued for Selling Unsafe Products and Loses