SOC 3490 Chapter 4: Glasbeek – The Small and the Ugly

• School: University of Guelph
• Department: Sociology
• Course: SOC 3490
• Professor: Scott Brandon

Document Summary

Corporations do everything in their power to push the legal envelope without actually committing fraud: however, it is possible for the corporate veil to be lifted if it can be proved fraud was committed. Corporations are often used, by capitalists and individuals, to prevent taxation. Transferring of funds between corporations owned by the same people/person to evade tax law or move capital to areas where taxes are lower. This goes against the principle that the market benefits all, as the lay-person does not see the benefit of taxation. Courts do not like to attack individuals behind the corporation so they try and find a way around it. Caused their corporation (a separate person) to breach their contract with the real estate agent and therefore could be held liable for committing a civilly unlawful act. Businesses can also use their corporation and savvy legal maneuvers to get around legal statutes in order to dodge contractual obligations, such as employment: ex.