Problem related to criminal prosecution


Question: An undercover investigation revealed that Gun Co. has been selling machine guns. While most of the transactions were legal sales to law enforcement agencies and the military, the investigation revealed that several of Gun Co.'s officers and directors were illegally selling machine guns in Gun Co.'s name to individuals with felony criminal records for their own personal profit. In a criminal prosecution of Gun Co. and its shareholders, the court will: Question options: a) not pierce the corporate veil. b) pierce the corporate veil, because of the criminal activity of Gun Co's officers and directors. c) pierce the corporate veil, because of the danger caused by illegal gun sales. d) not pierce the corporate veil, because there is no indication that the shareholders were aware of the illegal gun sales.

 

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Other Subject: Problem related to criminal prosecution
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