MacHined Parts Corp. v. Schneider

Plaintiff corporation was organized in 1920. Its business was the buying and selling of dis continued automobile parts. Defendant was in an allied business somewhat similar to that of plaintiff corporation; and defendant and plaintiff corporation had many business transactions over a period of years. In 1929, defendant purchased 1,000 shares of stock in the plaintiff corporation for the sum of $12,000, and a short time later sold 50 of these shares of stock to people connected with the corporation. When defendant purchased the stock it was understood that he did not intend to take an active…