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I am taking a business law II class. I need Fabor ...

Sent to Legal Experts January 24 2007 at 4:17 AM
   

I am taking a business law II class. I need Fabor Industries, Ltd v. Dori Leeds Witeck 483 SE2d 443 (NC App). I need to know did was Doris correct when she refused pay the guartantee of credit stating that she was acting as a personal guarantor for her business and not for Blind Ambitions. Is she correct

 

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Customer (name blocked for privacy)
Status:  Closed   Value: $9
Info Request
January 24 2007 at 4:29 AM (12 minutes and 37 seconds later)
         
Dear Customer (name blocked for privacy),

Do you know the year this case was decided?

I can get NC App. decisions from 1997 through 2007, but nothing before that.

Do you have access to your school's law library or Lexis or Westlaw online sources so you can look up this case? (They are not free, but law schools do allow students to search for free for homework purposes).

Edited by Jane T on January 24 2007 at 4:30 AM

PLEASE NOTE: Responses here are for information/education only, NOT legal advice and do not form attorney-client relationship! Only licensed attorneys you hire in your state can provide legal advice.
Jane T (LLC) -- Lawyer (JD) -- 100% Positive Feedback on 2178 Legal Accepts
Experienced attorney; contracts, internet, business, finance, employment, RE, consumer, & more.
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January 24 2007 at 5:02 AM (32 minutes and 48 seconds later)
         
I believe it was 1996 or 97 the question only states that in 1994 and 1995 Fabor brought suit asainst Dori Leeds.
Customer (name blocked for privacy)
Answer
January 24 2007 at 6:14 AM (1 hour and 12 minutes and 6 seconds later)
         
ACCEPTEDCheck Mark
Dear Customer (name blocked for privacy).

The case is available at: http://www.aoc.state.nc.us/www/public/coa/opinions/1997/960768-1.htm

Your question is answered below:

1. I need to know did was Doris correct when she refused pay the guartantee of credit stating that she was acting as a personal guarantor for her business and not for Blind Ambitions. Is she correct?

ANSWER

Generally, when a person signs a guarantee under their personal name it is a personal guarantee and he or she is liable for all debts under the loan his or her guarantee supports. In this case, Doris signed as "Doris Leeds DBA Blind Ambitions." Blind Ambitions is a sole proprietorship. A sole proprietorship is not an entity distinct from its owner as a corporation or LLC are. A sole proprietorship is the same as the person. Therefore, it was not the business debts that were guaranteed, it was the debts of Ms. Leeds that were guaranteed.

The debts Fabor wants repayment for were incurred by David and Judith Leeds DBA Blind Ambitions. Doris did not guarantee the debts of Blind Ambitions or David and Judith Leeds, she only guaranteed her personal debt. Because David and Judith Leeds incurred the debts Fabor is suing for Fabor cannot enforce Ms. Leeds' guarantee. It was Fabor's duty to update the guarantee to have David and Judith Leeds guarantee debts.

PLEASE NOTE: Responses here are for information/education only, NOT legal advice and do not form attorney-client relationship! Only licensed attorneys you hire in your state can provide legal advice.
Jane T (LLC) -- Lawyer (JD) -- 100% Positive Feedback on 2178 Legal Accepts
Experienced attorney; contracts, internet, business, finance, employment, RE, consumer, & more.
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