Peninsular Stove Co. v. Augst

In January, 1931, the Peninsular Stove Company, a Michigan corporation which had been in the business of manufacturing stoves and furnaces for some 50 years, was in a failing condition. A receiver was appointed, but the record does not show the nature of the receivership, i. e., whether to conserve the assets and continue the business or to wind up and terminate the affairs of the corporation. In February, 1931, Frank C. Mack and Richard Casey, two employees of the stove company, started in business for themselves. The nature of this business was to service the Peninsular line of stoves and…