Question:
In the early 1970s, Justine Lyons opened an account at J & J Wholesale Florist, Inc., to purchase flowers and florist supplies for her flower shop, called Bay Sweet Flower Shop, which she operated as a sole proprietorship. In 1983, the flower shop was incorporated as Bay Sweet Flower Shop, Inc. Lyons continued to order supplies from J & J, as did her son when he began to manage the day-to-day operations of the shop during the 1980s. J & J, which had no knowledge that Bay Sweet was now a corporation, sued Lyons and her son personally to recover a balance owing on the Bay Sweet account (for purchases made after Bay Sweet had incorporated).
Is the fact that J & J was never informed of the subsequent incorporation of the Bay Sweet Flower Shop a sufficient ground for piercing the corporate veil and holding Lyons and her son personally liable for the debt? Explain.
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