Case 7: Treadwell v. J.D. Construction Co., 938 A.2d 794 (Me. Sup. Jud. Ct. 2007) (Mallor,16th Ed., p. 976)In the early 1990s, Jesse Derr created a corporation, JCDER, Inc., to operate his constructionbusiness. At some point, Derr began referring to the corporation as J.D. Construction Co., Inc.,but no corporation by that name was ever created. JCDER, Inc., remained the official name forpurposes of organization and filing with Maine’s Secretary of State. Derr never filed with theSecretary of State a statement of intention to do business under the assumed name J.D.Construction Co., Inc.In 2003, when Leah and William Treadwell decided to build a home, they were referred to Derr.The Treadwells brought their home plans to Derr’s office to get a quote and left the plans with anemployee, Jane Veinot. They did not meet with Derr, but received a quote from him in the mail.Soon after, the Treadwells signed a contract with J.D. Construction, with work to start in May2003. Derr signed the contract, and his signature appeared on the contract as follows:J.D. Construction Co., Inc.By: Jesse DerrThe name JCDER, Inc., was nowhere in the contract, and the Treadwells were unaware of theexistence of JCDER, Inc., when they signed the agreement. None of the documents theTreadwells received from J.D. Construction indicated that the company’s real name was JCDER,Inc.Mr. Treadwell testified that he spoke with Derr twice at the worksite, just as they were breakingground. The Treadwells, who visited the site almost daily, never saw Derr again, even thoughthey tried many times to contact him. They spoke to Veinot often, but she would tell them thatDerr was at another construction site. Derr had hired subcontractors to do the work on theTreadwells’ property. Around Thanksgiving 2003, the Treadwells visited the site and found thatDerr had abandoned the job with the house unfinished because the company was not making anymoney on the job. The Treadwells had paid Derr approximately $91,000 before constructionhalted.The Treadwells found many problems with the structure, including twisted studs and otherlumber that had to be replaced. The Treadwells hired new contractors to fix and finish theproject, for which they paid a significant sum.To recover the additional costs, the Treadwells sued J.D. Construction Co., JCDER, Inc., andDerr for breach of contract and other grounds. The trial court awarded the Treadwells damagesagainst J.D. Construction Co., Inc., and JCDER, Inc., but found that Derr was not personallyliable for the damages. The Treadwells appealed to the Supreme Judicial Court of Maine, askingthat Derr also be held liable.1. The trial court was correct in finding Derr was not personally liable for thedamages suffered by the Treadwells, because the Treadwells hired J.D.Construction Co., Inc. to construct the home.2. Treadwells’ judgment against J.D. Construction Co., Inc. can be used to initiate acollection action against Derr.3. Derr is personally liable for the failure of the subcontractors to complete theconstruction work properly.4. If Treadwells had hired JCDER, Inc. to construct the home, Derr can nonethelessbe held personally liable for the failure of the subcontractors to complete theconstruction work properly, if there are insufficient assets in JCDER, Inc. to paythe judgment entered in favor of the Treadwells.5. If the Treadwells contracted with JCDER, Inc. to construct the house, JCDER,Inc. is a totally disclosed principal.Answer Questions 1-5 with true or false answers and an explanation to support your answer.