Mark Burnett and Kamran Pourgol were the only shareholders in a corporation that

Question

Mark Burnett and Kamran Pourgol were the only shareholders in a corporation that built and sold a house. When the buyers discovered that the house exceeded the amount of square footage allowed by the building permit, Pourgol agreed to renovate the house to conform to the permit. No work was done, however, and Burnett filed a suit against Pourgol. Burnett claimed that, without his knowledge, Pourgol had submitted incorrect plans to obtain the building permit, misrepresented the extent of the renovation, and failed to fix the house.
1. Pourgol held a (majority, minority, unclear) amount of shares in the close corporation.
2. Is a court likely to find Pourgol liable for his actions? (Yes, No)
3. Assume that Pourgol and Burnett agreed to the plans submitted to the town and Burnett and was made aware beforehand of the promise to fix the buyer's home. Would Pourgol most likely be held liable in this instance? (Yes, No)
4. Would the buyers still be able to recover the costs of renovation to conform the house allowed by the building permit? (Yes, No) Mark Burnett and Kamran Pourgol were the only shareholders in a corporation that built and sold a house. When the buyers discovered that the house exceeded the amount of square footage allowed by the building permit, Pourgol agreed to renovate the house to conform to the permit. No work was done, however, and Burnett filed a suit against Pourgol. Burnett claimed that, without his knowledge, Pourgol had submitted incorrect plans to obtain the building permit, misrepresented the extent of the renovation, and failed to fix the house.
1. Pourgol held a (majority, minority, unclear) amount of shares in the close corporation.
2. Is a court likely to find Pourgol liable for his actions? (Yes, No)
3. Assume that Pourgol and Burnett agreed to the plans submitted to the town and Burnett and was made aware beforehand of the promise to fix the buyer's home. Would Pourgol most likely be held liable in this instance? (Yes, No)
4. Would the buyers still be able to recover the costs of renovation to conform the house allowed by the building permit? (Yes, No) Mark Burnett and Kamran Pourgol were the only shareholders in a corporation that built and sold a house. When the buyers discovered that the house exceeded the amount of square footage allowed by the building permit, Pourgol agreed to renovate the house to conform to the permit. No work was done, however, and Burnett filed a suit against Pourgol. Burnett claimed that, without his knowledge, Pourgol had submitted incorrect plans to obtain the building permit, misrepresented the extent of the renovation, and failed to fix the house.
1. Pourgol held a (majority, minority, unclear) amount of shares in the close corporation.
2. Is a court likely to find Pourgol liable for his actions? (Yes, No)
3. Assume that Pourgol and Burnett agreed to the plans submitted to the town and Burnett and was made aware beforehand of the promise to fix the buyer's home. Would Pourgol most likely be held liable in this instance? (Yes, No)
4. Would the buyers still be able to recover the costs of renovation to conform the house allowed by the building permit? (Yes, No)

Explanation / Answer

2. Yes, the court would surely find Pourgal Liable for his actions because he built and constructed the house in violation of the building permit.

3. Yes, even then he would be liable as his act was in extreme violation of the building act as right from the time the project was undertaken, there should have been adherence to the building permit polices. Hence,post the irregularities, any reconcilation between the two doesn't make him any less liable for his actions.

4. As it is mentioned above, it is duty of Burnett & Pourgol to renovate the house, hence buyers need not worry about recovering the cost of renovation as it is their responsibility to reconstruct the house as promised.

Related Questions

Navigate

• Browse (All)
• Browse M
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.