Master Ink owns all the stock of Prime Pen Co.A Prime Pen employee commits a tort for which the employer is liable.The suit results in a judgment for $1 million against Prime Pen.Prime Pen assets total $650,000,but Master Ink's assets are in the millions.In which of the following situations would the judgment have to be paid by Master Ink?

Question

Quizplus · Accepted Answer

Master Ink would have to pay the judgment if Prime Pen's income and Master Ink's income are held in one account, as this suggests a lack of separation between the two entities, potentially allowing for the piercing of the corporate veil.

Master Ink Owns All the Stock of Prime Pen Co