In order for the court to pierce the corporate veil, there must have been an unlawful situation within the corporation. For instance, if the corporations assets have been used for personal finances as opposed to using it just for the purpose of the corporation, the court might become suspicious of this type of activity. In a case like this, they would hold the owner responsible because they are not treating the company’s assets separate from their individual assets. Instead, they are treating the company’s asset as their own, and are using it for personal reasons.