[jnordwick]

That's a very good point, but I think in the absence of a legal entity of a corporation or similar, you would see contracts written (with suppliers for example) to limit liability anyways. Contracts between people would become vastly more complex, but still often provide the same benefit.

Because corporations are ultimately people, any restraints on them are essentially restraints on people. There is a very fine and difficult to draw line between a person talking about this awesome idea he has and a CEO talking about this awesome product he has, but the law does try to draw that line and I think is often fairly good at it.