Loretta opens a candy shop on Main Street. Concerned about p…
Loretta opens a candy shop on Main Street. Concerned about potential liability serving food to the public, she incorporates her business. After a few months, she fails to follow the manufacturer’s suggestions and refrigerate her fudge. As a result, every mother in town falls ill after eating gifts of fudge on Mother’s Day. If a mother who became sick sues, Loretta will only be liable up to the limits of what she invested in the business because she incorporated and thus shielded herself from personal liability.