Problem related to operating a record label


Assignment task: Elliot and Brandwon operate a record label, Surf Dreams, in the Inland Empire region of California. They have not filed any paperwork with the state, but they have been jointly operating the business for ten years. In June 2020, Brandwon took out a loan from a bank in the company's name for $250,000. Brandwon then disappeared, and the bank came after Elliot for repayment. Which of the following statements is true?

a. Because they did not file any paperwork with the state, Elliot is not liable for Brandwon's debt.

b. Only the record label as a business is liable for the debts. Neither Elliot nor Brandwon is personally liable.

c. Elliot is personally liable for the debt that Brandwon incurred in the company's name.

d. Elliot is only liable for the debt if he signed the loan paperwork as a cosigner or guarantor.

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Other Subject: Problem related to operating a record label
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