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Constance Barr was the sole owner of The Stone Scone, a business operated as a sole proprietorship. Based on documents signed by Barr onbehalf of the Stone Scone, Fleet Bank approved a $100,000 unsecured small business line of credit for Stone Scone. Fleet Bank sent a letter addressed to Barr and The Stone Scone, which stated, “Dear Constance H. Barr: Congratulations! Your company has been approved for a $100,000 Small Business Credit Express Line of Credit.” The bank sent account statements addressed to both The Stone Scone and Barr. For four years, Fleet Bank provided funds to The Stone Scone. After that time, The Stone Scone did not make any further payment on the loan, leaving $91,444 unpaid principal. The bank sued The Stone Scone, to recover the unpaid principal and interest. Barr stipulated to a judgment against The Stone Scone, which she had convertedto a limited liability company, but denied personal responsibility for the unpaid debt. Should Barr be personally liable for the debt? Why or why not?
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