Nysingh v. Warren

McQUADE, Chief Justice.

Ivan Van Warren designed and constructed a miniature merry-go-round which he, his father (C. M. Warren) and brother (J. C. Warren) intended to market as a customer device for shopping centers. Upon viewing a prototype displayed in St. Louis, sales executive Walter D. Wiebracht insisted on becoming the sole contributor of capital to the infant enterprise. In July, 1958, Wiebracht joined the Warrens in a close corporation capitalized at $16,000, or $4,000 per shareholder, invested entirely by Wiebracht. In return, Ivan Van Warren manufactured the merry-go-rounds,…