Question

The ________ rule holds that a person can only defend a third party under circumstances and only to the degree that the third party could legally act on his or her own behalf.

Answer 1

The correct answer is : Alter Ego Rule

Step-by-step explanation:

In order to prevent fraud in a company, this legal principle avoids the stock owner being treated like one. It provides a legal shield for the person that in fact is controlling the operation. It is a way to ignore the corporate status of a group of stockholders.