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Western Carolina UniversityLAW 230 Guns R Us, Inc

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Western Carolina UniversityLAW 230

Guns R Us, Inc. has been selling machine guns, against state and federal law, to individuals with criminal records. A 25 year-old with criminal background, who purchased one of their guns, shot three innocent individuals at a gym. The family of the victims plan to sue the company and its only shareholder brothers, Dan and Mike, for damages. The defendants claim that they can't be parties to the lawsuit because Guns 'R' Us is a corporation and as shareholders, they cannot be personally liable for the obligations of the company. In court, the evidence showed that the defendants, while keeping a separate bank account for the corporation, had commingled its funds with their personal finances. They had used the accounts for the corporation and their other businesses interchangeably, with no regard for which company should be providing money for which expenses. Similarly, the books for the businesses were inadequately tracked, distinguished, and recorded.

 How would you decide the case if you were the judge? Explain