Cade, the owner of Cade Body Shop, Inc. is in the habit of paying business expenses from his personal checking account. One such check to Parts Warehouse, Inc. is dishonored, and Parts attempts to collect from Cade personally who asserts that only Cade Body Shop, Inc. is liable. Discuss the legal resolution of this problem.

Cade is the owner and proprietor of the organization and he has signed the check for Parts Warehouse.(Assumption) Cade is legally responsible to pay Parts Warehouse for the check bounce as the structure of his business determines his liability.

Explanation:

Cade is the owner and proprietor of the organization and he has signed the check for Parts Warehouse.(Assumption) Cade is legally responsible to pay Parts Warehouse for the check bounce as the structure of his business determines his liability

The legal resolution of this problem is that the financial transactions between the two corporate organizations must be through the corporate account, and not through personal checking account

Explanation:

Personal checking account is an account with easy access and no monthly limits for transactions. Payment of bills, use of ATM to make withdrawals, and any other personal banking transactions has no monthly limit.

Cade personal checking account, does not represent a legal financial transactions account for his corporate establishment (Cade Body Shop Inc.)

The payment check to Parts Warehouse Inc. was dishonored between it was from Cade personal checking account, and not from Cade Body Shop Inc. corporate account, which have a legal agreement with Parts Warehouse Inc., which is liable for any financial transactions between the two companies.

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explanation:

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