Russ owns Statewide Freight Company. He uses the firm's funds to pay his personal expenses, creates Trucking Inc. to engage in the same business, transfers the assets to Trucking, and petitions Statewide into bankruptcy. This most likely warrants

Question

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Russ's actions suggest that he abused the limited liability protection afforded by Statewide's corporate form. By using the company's funds to pay personal expenses, creating a competing business, and transferring Statewide's assets, he disregarded the separateness between his personal affairs and those of the corporation. Piercing the corporate veil would allow bankruptcy courts to hold Russ personally liable for Statewide's debts.

Russ Owns Statewide Freight Company