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  3. william sharp was the sole shareholder and manager of chickasaw...

Question: william sharp was the sole shareholder and manager of chickasaw...

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William Sharp was the sole shareholder and manager of Chickasaw Club, Inc., an S corporation that
operated a popular nightclub of the same name in Columbus, Georgia. Sharp maintained a corporate
checking account but paid the club’s employees, suppliers, and entertainers in cash out of the club’s
proceeds. Sharp owned the property on which the club was located. He rented it to the club but made
mortgage payments out of the club’s proceeds and often paid other personal expenses with Chickasaw
corporate funds.


At 12:45 a.m. on July 31, eighteen-year-old Aubrey Lynn Pursley, who was already intoxicated, entered
the Chickasaw Club. Chickasaw employees did not check Pursley’s identification to verify her age, as
required by a city ordinance. Pursley drank more alcohol at Chickasaw and was visibly intoxicated when
she left the club at 3:00 a.m. with a beer in her hand. Shortly afterward, Pursley lost control of her car,
struck a tree, and was killed. Joseph Dancause, Pursley’s stepfather, filed a tort lawsuit against Chickasaw
Club and William Sharp. Using the information presented in the chapter, answer the following questions.

4. How would the court classify Chickasaw Club, Inc.—domestic or foreign, public or private?

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