Author: Anonymous

Are mandatory, and cannot be waived or modified through inter se agreements. 

Prompt for questions 5-9. Bob, sole owner of Bob’s Bait & Beer, an unincorporated business, hires Homer to manage his shop. Bait shops normally sell leeches as well as nightcrawlers and minnows, but Bob tells Homer that leeches “give him the Willies,” and that he doesn’t want them in his shop. Homer discovers that Bob’s anti-leech policy is costing them business, and places a large leech order with Larry’s House of Leeches, telling Larry only that he is placing the order on behalf of Bob’s Bait & Beer. Applying traditional principles of agency law:

They were trying, in effect, to create a limited liability company (LLC), and their approach was inadequate because to create an LLC they needed to register with the relevant state authority. 

Prompt for Questions 52-54. In the venture capital context, preferred shareholders:

Is still popular in estate planning due to the treatment it receives from the IRS. 

Is an old business form that forced investors to give up control rights in exchange for limited liability and flow-through tax treatment. 

Prompt for Questions 29-32. Heart, Moon, Star and Clover are partners in a 20-year term partnership. All are actively involved in the business. Ten years into the partnership, Heart serves notice that she is leaving the partnership. Learning of Heart’s departure, Clover has decided that she wishes to leave the partnership as well. Which of the following alternatives, if any, are available to Moon and Star?

Is used as the vehicle for organizing start-up businesses seeking venture capital because venture investors are willing to give up control in exchange for limited liability.

Light having a speed in vacuum of 3.0 × 108 m/s enters a liquid of refractive index n = 2.0. The speed of this light in the liquid is

Disgorgement and rescission are equitable remedies, and therefore are only available upon proof of legal damages.