Discuss when a member of a limited liability company does.docx
1. Discuss when a member of a limited liability company does
ASSIGNMENTGordon is the only limited partner in Bushmill Ventures, a limited partnership
whose general partners are Daniels and McKenna. Gordon contributed $10,000 for his
limited partnership interest and loaned the partnership $7,500. Daniels and McKenna each
contributed $5,000 by way of capital. After a year, the partnership is dissolved, at which
time it owes $12,500 to its only creditor, Dickel, and has assets of $30,000.a. How should
these assets be distributed?b. If Bushmill Ventures had been formed as a limited liability
company with Gordon, Daniels, and McKenna as members, how should these assets be
distributed?7. Discuss when a limited partner does or does not have the following rights or
powers: (a) to assign his interest in the limited partnership, (b) to receive repayment of
loans made to the partnership on a pro rata basis with general creditors, (c) to manage the
affairs of the limited partnership, (d) to receive his share of the profits before the general
partners receive their shares of the profits, and (e) to dissolve the partnership upon his
withdrawing from the partnership.8. Discuss when a member of a limited liability company
does or does not have the following rights or powers:(a) to assign her interest in the LLC,
(b) to receive repayment of loans made to the LLC on a pro rata basis with general creditors,
(c) to manage the affairs of the LLC, and (d) to dissolve the LLC upon her withdrawing from
the LLC.9. Albert, Betty, and Carol own and operate the Roy Lumber Company, a limited
liability partnership (LLP). Each contributed one-third of the capital, and they share equally
in the profits and losses. Their LLP agreement provides that all purchases exceeding $2,500
must be authorized in advance by two partners and that only Albert is authorized to draw
checks. Unknown to Albert or Carol, Betty purchases on the firm’s account a $5,500
diamond bracelet and a $5,000 forklift and orders $5,000 worth of logs, all from Doug, who
operates a jewelry store and is engaged in various activities connected with the lumber
business. Before Betty made these purchases, Albert told Doug that Betty is not the log
buyer. Albert refuses to pay Doug for Betty’s purchases.Doug calls at the mill to collect, and
Albert again refuses to pay him. Doug calls Albert an unprintable name, and Albert then
punches Doug in the nose, knocking him out. While Doug is lying unconscious on the
ground, an employee of Roy Lumber Company negligently drops a log on Doug’s leg,
breaking three bones.The firm and the three partners are completely solvent.What are the
rights of Doug against Roy Lumber Company, Albert, Betty, and Carol?
