Niki owns O.K. Oil Corporation. Niki uses O.K.'s funds to pay her personal expenses, creates Pure Fuel Corporation to engage in the same business as O.K., transfers O.K.'s assets to Pure Fuel, and petitions O.K. into bankruptcy. This most likely warrants

Question

Quizplus · Accepted Answer

Niki's actions suggest that she may have disregarded O.K.'s separate legal personality and used the corporation as a mere instrumentality to further her own interests. This warrants a pierce of O.K.'s corporate veil, which would hold Niki personally responsible for O.K.'s debts and liabilities. B and D are incorrect because bankruptcy does not automatically discharge Niki's obligations, and Pure Fuel's articles of incorporation are not directly relevant to Niki's conduct. A is incorrect and inappropriate as it rewards unethical behavior.

Niki Owns O