Law for Business 12th Edition by James Barnes,Terry Dworkin,Eric Richards

Exercise 1

John Decina contracted with H.A. Smith Lumber Hardware to buy materials for Decina Corporation. When John Decina completed the credit application with Smith Lumber, he wrote the type of ownership as "corporation" and listed himself as "president" but wrote the "name of Business/Individual" as "John Decina." He also provided his own builder's license number, not the builder's license number of Decina Corporaton. Further, he provided his personal Social Security number instead of a corporate tax identification number. Indeed, Decina Corporation was not written anywhere on the application. When Decina Corporation failed to pay for the materials, Smith Lumber sued John Decina personally. Is John Decina personally liable on the contract with Smith Lumber? Explain.