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Answer :
In the given scenario, where Kim and Pete form a corporation named PeKim Bathing Suits, the liability of Kim and Pete would depend on the type of corporation they have established. If they have properly followed the legal requirements and formalities to form a corporation, they would generally be shielded from personal liability.
A corporation is a separate legal entity from its owners (shareholders), which means that it has its own legal existence and liabilities. In most cases, the shareholders' personal assets are protected, and their liability is limited to the amount they have invested in the corporation.
However, there are situations where the "corporate veil" can be pierced, and the shareholders can be held personally liable. One such situation is when there is evidence of fraudulent or improper conduct by the shareholders or if they fail to meet certain legal requirements.
In this scenario, if Kim and Pete failed to fix the issues in their paperwork as required by the Secretary of State, it could potentially be seen as a failure to meet legal requirements. If this failure is deemed significant enough, a court might disregard the limited liability protection and hold Kim and Pete personally liable for the consequences of their actions.
Regarding the customer's death and the subsequent lawsuit, the liability would generally fall on the corporation itself. As long as the corporation has followed applicable laws and regulations regarding product safety, warnings, and disclosures, it would be the corporation that would be primarily responsible for any damages awarded to the customer's family.
It's important to note that legal outcomes can vary based on specific circumstances and jurisdiction. Therefore, consulting with a legal professional who is familiar with the laws of the relevant jurisdiction would be essential to obtain accurate and personalized advice in this situation.
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