EZ Hauling holds itself out to customers as being a corporation but makes no attempt to incorporate. In this circumstance, EZ Hauling is most likely
A) a corporation by estoppel.
B) a de facto corporation.
C) a de jure corporation.
D) a benefit corporation.

Question

EZ Hauling holds itself out to customers as being a corporation but makes no attempt to incorporate. In this circumstance, EZ Hauling is most likely​
A) ​a corporation by estoppel.
B) ​a de facto corporation.
C) ​a de jure corporation.
D) ​a benefit corporation.

Quizplus · Accepted Answer

EZ Hauling would be considered a corporation by estoppel because it has represented itself as a corporation to others, even though it has not gone through the formal process of incorporation. This legal principle prevents the business from denying its corporate status to third parties who have dealt with it under the assumption it was a corporation.

EZ Hauling Holds Itself Out to Customers as Being a Corporation