Description
In January 2020, Sofia and Lenny started a data analytics software company. The company is incorporated in Delaware but hires several independent contracts to conduct sales in California.
During the first year, Lenny sold 10 subscriptions of the data analytics software programs for $50,000 each. The business had a net profit of $480,000 and Sofia and Lenny each received $240,000. They did not maintain any corporate bank account and did not keep any money for any potential liability.
In January 2020, when Sofia and Lenny started their business, they hired an attorney to incorporate their business under the name “Data Revolution, Inc.” in Delaware. The attorney properly prepared all necessary documents and filed with the Secretary of State. Sofia and Lenny did not hold an organization meeting; they did not approve any bylaws; Nor did they appoint any officers. Sofia and Lenny did not obtain any other certifications from any other states for their company.
In February 2021, Matt, one of the customers of Data Revolution, Inc., who is a resident of California, failed to make payments on the subscription contracts it entered with the company. Sofia and Lenny decided to sue the customer in California courts.
In November 2021, Lenny had an automobile accident, caused solely by his own negligence, on the way to visit a prospective buyer. The accident injured a pedestrian whose name is Zhang.
Please respond to the following. Use IRAC for each and all of issues in each of the questions below.
Can Data Revolution, Inc. sue Matt (customer in California) in California courts? Please fully discuss this question.
Was Data Revolution, Inc. properly incorporated and what are the consequences? Please fully discuss this question.
Can Zhang (the pedestrian) sue Sofia for the injuries he suffered? Please fully discuss this question.
