History and Nature of Corporations

Advanced Business Law HW 9- Chapter 41 Case 41-14 -Corporations
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Case 41-14 Supply Chain Assocs., LLC v. ACT Elecs., Inc.
30 Mass. L. Rep. 12 (Mass. Super. Ct. 2012)
I. JUDGMENT
The plaintiffs failed to demonstrate that ACT’s corporate veil should be pierced in this case, and therefore as such, there was summary judgment for the defendants. 
II. LEGAL PRINCIPLE
A. ISSUE
Supply Chain Associates, LLC, and Estream Solutions, LLC, who are representatives and brokers assisting in selling electronic products, and ACT Electronics, Inc, the defendant, retained their services. The corporate veil reflects the legal concept where the corporation is separate from the members or shareholders. Piercing the corporate is the legal concept that a corporation’s rights or duties are treated the same as the shareholders’ rights or liabilities of its shareholder. Sun Act was ACT’s main shareholder and had the voting shares. Should ACT’s corporate veil be pierced, and the company was not liable for commissions for failing to pay the plaintiffs?
B. HOLDING
Twelve factors were considered in determining whether to pierce the corporate veil from common ownership to whether the corporation was used to promote fraud.
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