Agency, Partnerships and Limited Liability Companies

by Rosin, Gary S.; Closen, Michael L.

• ISBN13: 9780890899038
• ISBN10: 0890899037
• Format: Paperback
• Copyright: 2000-09-01
• Publisher: Carolina Academic Press

Summary

In addition to its coverage of agency and partnership, the new edition of Agency and Partnership Law adds coverage of limited liability partnerships and limited liability companies. Because the authors feel that agency law is the foundation on which the law of business firms is built, the second edition retains substantial treatment of both the contract and tort aspects of agency law. It integrates problems into the text to facilitate teaching by the problem method and introduces a transactional perspective by using problems that ask students to structure transactions so as to achieve client goals while addressing the concerns raised in the materials. The new edition also continues to cover the various unincorporated firms by comparing and contrasting their functional characteristics.

Although the authors retain many of the standard teaching cases, most of these cases are covered via case digests that appear in the notes following the principal cases. The cases presented not only emphasize the continuing relevance of agency and partnership, but also highlight

Table of Contents

Table of Cases	xv
Preface	xix
Preface to the First Edition	xxi
Introduction to Firms	3	(78)
Introduction	3	(1)
The Types of Firms	3	(9)
Sole Proprietorships	3	(1)
Partnerships	4	(2)
Limited Partnerships	6	(1)
Limited Liability Partnerships	7	(1)
Limited Liability Limited Partnerships	8	(1)
Limited Liability Companies	9	(2)
Corporations	11	(1)
What Does This Book Have to Do with These Kinds of Firms?	12	(2)
The Firm and its Agents and Servants	14	(22)
Problem 1.1	14	(1)
Green v. H & R Block, Inc.	14	(16)
Problem 1.2	30	(1)
Green v. H & R Block, Inc. (Part 2)	30	(6)
The Firm and Its Owners	36	(45)
Partnerships	36	(1)
Note on Entity versus Aggregate Theories of Business Forms	36	(2)
Problem 1.3	38	(1)
Swiezynski v. Civiello	38	(7)
Limited Partnerships	45	(2)
Life Care Centers of America, Inc. v. Charles Town Assoc. Ltd. Partnership	47	(11)
Limited Liability Partnerships (LLP's)	58	(1)
Note on the LLP and LLLP Forms on Business	58	(3)
Liberty Mutual Ins. Co. v. Gardere & Wynne, L.L.P.	61	(7)
Limited Liability Companies	68	(2)
Elf Atochem North America, Inc. v. Jaffari	70	(11)
Contractual Dealings by Agents	81	(44)
Firm's Liability in Contract for Acts of Its Agents	81	(3)
Problem 2.1	81	(1)
Kasselder v. Kapperman	81	(3)
Firm's Rights Under Contracts Entered Into by Its Agents	84	(9)
The Woodlawn Park Ltd. Partnership v. Doster Constr. Co., Inc.	84	(4)
Problem 2.2	88	(1)
Kelly Asphalt Block Co. v. Barber Asphalt Paving Co.	89	(4)
Problem 2.3	93	(1)
Agent's Liability for Contractual Dealings	93	(32)
Agent's Duty to Fully Disclose Principal	93	(1)
Problem 2.4	93	(1)
Clark v. Maddux	94	(2)
Copp v. Breskin	96	(3)
Problem 2.5	99	(1)
Water, Waste & Land, Inc. v. Lanham	99	(12)
Agent's Implied Warranty of Authority	111	(1)
Farm Credit Bank v. FCB Ltd. Partnership	111	(3)
Election of Remedies	114	(1)
Problem 2.6	114	(1)
Orrock v. Crouse Realtors, Inc.	114	(2)
Crown Controls, Inc. v. Smiley	116	(6)
Problem 2.7	122	(3)
Formation of Firms	125	(78)
Introduction	125	(1)
Agency Relationships	125	(6)
Estate of Giannopoulos	125	(3)
Maricopa Partnerships, Inc. v. Petyak	128	(3)
Partnerships	131	(18)
Dalton v. Austin	131	(4)
Chariton Feed & Grain, Inc. v. Harder	135	(10)
P & M Cattle Co. v. Holler	145	(4)
Firms with Limited Liability	149	(54)
Formalities of Formation	149	(1)
Limited Partnerships	149	(2)
Limited Liability Companies	151	(2)
Limited Liability Partnerships	153	(1)
Limitations on Purpose or Business of Limited liability Firms	154	(1)
Meyer v. Oklahoma Alcoholic Beverage Laws Enforcement Comm'n	154	(4)
Opinion Number R-17 Comm. on Prof'l & Judicial Ethics State Bar of Michigan	158	(5)
Contracts Entered into before Formation of a Limited Liability Firm	163	(1)
Problem 3.1	163	(1)
Traditional Approach	164	(1)
Goodman v. Darden, Doman & Stafford Assoc.	164	(6)
Dwinell's Central Neon v. Cosmopolitan Chinook Hotel	170	(2)
Interaction of Statutes and Common Law	172	(1)
Problem 3.2	172	(1)
Briargate Condominium Ass'n, Inc. v Carpenter	172	(9)
American Vending Services, Inc. v. Morse	181	(17)
Ruggio v. Vining	198	(5)
Actual Authority of Agents, And Its Consequences	203	(32)
Introduction	203	(1)
Express Actual Authority	203	(6)
Problem 4.1	203	(1)
King v. Bankerd	204	(5)
Problem 4.2	209	(1)
Implied Actual Authority	209	(4)
Mill Street Church of Christ v. Hogan	210	(3)
Agent's Duty of Loyalty
Problem 4.3	213	(1)
Green v. H & R Block, Inc. (Part 2)	213	(1)
Problem 4.4	213	(1)
Problem 4.5	214	(2)
Schock v. Nash	216	(15)
Problem 4.6	231	(1)
Rogers v. Robson, Masters, Ryan, Brumund & Belom	231	(4)
Power of Agents to Bind the Firm by Unauthorized Acts	235	(50)
Introduction	235	(1)
Apparent Authority	236	(9)
Problem 5.1	236	(1)
Hamilton Hauling, Inc. v. GAF Corp.	236	(6)
Fennell v. TLB Kent Company	242	(3)
Estoppel	245	(8)
Problem 5.2	245	(1)
Metalworking Machinery Co., Inc. v. Fabco, Inc.	246	(2)
Problem 5.3	248	(1)
Goldstein v. Hanna	249	(4)
Inherent Agency Power	253	(13)
Dupuis v. Federal Home Loan Mortgage Corporation	254	(8)
Problem 5.4	262	(1)
Note on Zanac Inc. v. Frazier Neon Signs Inc.	263	(1)
Additional Problems	264	(2)
Special Topics	266	(13)
Introduction	266	(1)
Liability for Representations by Agents	266	(1)
Problem 5.10	266	(1)
Conge v. Stotler & Co., Inc.	266	(5)
Agent Diversion of Funds	271	(1)
Problem 5.11	271	(1)
Entente Mineral Co. v. Parker	271	(5)
Liability to Passengers	276	(1)
Pierson v. United States	276	(3)
Agent's Duty of Obedience	279	(6)
Problem 5.12	279	(1)
Crawford v. DiMicco	279	(6)
Management and Conduct of Firm Business	285	(64)
Introduction	285	(1)
Partnerships	286	(38)
Introduction	286	(1)
Partners as Agents	286	(1)
Apparent Authority	286	(1)
Problem 6.1	286	(1)
Burns v. Gonzalez	287	(5)
Problem 6.2	292	(1)
Kansallis Finance Ltd. v. Fern	293	(10)
Estoppel	303	(1)
Problem 6.3	303	(1)
Problem 6.4	303	(1)
Cheesecake Factory, Inc. v. Baines	303	(8)
Problem 6.5	311	(1)
Partners as Managers	311	(1)
Generally	311	(1)
Problem 6.6	311	(1)
National Biscuit Co., Inc. v. Stroud	312	(3)
Covalt v. High	315	(5)
Transactions out of the Usual and Regular Course of Business	320	(1)
Vinson v. Marton & Associates	320	(4)
Corporations	324	(1)
Limited Partnerships	325	(21)
Introduction	325	(1)
Voting Rights of Limited Partners	325	(1)
Wasserman v. Wasserman	325	(5)
Fox v. I-10, Ltd.	330	(8)
Limitations on Contractual Expansion of Limited Partner Rights	338	(1)
Gast v. Petsinger	338	(4)
Frigidaire Sales Corp. v. Union Properties, Inc.	342	(4)
Note on ``Re-RULPA'' Section 303	346	(1)
Limited Liability Companies	346	(3)
Introduction	346	(2)
Problem 6.7	348	(1)
LLC Operating Agreements	348	(1)
Elf Atochem North America, Inc. v. Jaffari	348	(1)
Managerial Discretion and Fiduciary Duties	349	(44)
Business Judgment Rule	349	(13)
Problem 7.1	349	(1)
Myers v. Maxey	349	(6)
Problem 7.2	355	(1)
Kamin v. American Express Company	355	(7)
Duty of Loyalty	362	(31)
Problem 7.3	362	(1)
Schock v. Nash	362	(1)
Starr v. International Realty, Ltd.	362	(5)
Problem 7.4	367	(1)
Labovitz v. Dolan	367	(11)
Sonet v. [Plum Creek] Timber Company, L.P.	378	(15)
Firm's Accountability for Notification to and Knowledge of the Agent	393	(34)
General Rules	393	(10)
Knowledge	393	(1)
E. Udolf, Inc. v. Aetna Casualty & Surety Company	393	(5)
Problem 8.1	398	(1)
Notification	398	(1)
Dvoracek v. Gillies	398	(3)
Prior or Causally Obtained Knowledge or Notification	401	(1)
Problem 8.2	401	(1)
Davenport v. Correct Manufacturing Corp.	401	(2)
Time From Which Notification or Knowledge Affects Principal	403	(4)
Problem 8.3	403	(1)
Biggs v. Terminal Railroad Association	404	(3)
Adverse Agents	407	(20)
Federal Deposit Insurance Corporation v. Smith	407	(7)
Lanchile Airlines v. Connecticut General life Ins.	414	(4)
State Farm Fire & Casualty Co. v. Sevier	418	(9)
Ratification of Unauthorized Transactions	427	(18)
Affirmance	427	(10)
Botticello v. Stefanovicz	427	(3)
Problem 9.1	430	(1)
Rakestraw v. Rodrigues	431	(4)
3 A's Towing Co. v. P & A Well Service, Inc.	435	(2)
Knowledge of Agents	437	(3)
Estate of Sawyer v. Crowell	437	(3)
Partial Ratifications	440	(5)
Problem 9.2	441	(1)
Navrides v. Zurich Insurance Co.	441	(4)
Liability for Wrongful Acts of Servants	445	(86)
Introduction	445	(1)
Duties in Selecting and Supervising Servants	446	(7)
Evans v. Morsell	446	(7)
Liability Without Fault (Respondeat superior)	453	(57)
Scope of Employment	453	(1)
Problem 10.1	454	(1)
Thompson v. United States	454	(3)
Problem 10.2	457	(1)
Henderson v. AT&T Information Systems	458	(6)
Problem 10.3	464	(1)
Sage Club v. Hunt	464	(6)
Problem 10.4	470	(1)
Note on Ratification of Torts and Crimes	470	(1)
Abuse of Position	471	(1)
Entente Mineral Co. v. Parker	472	(1)
Problem 10.5	472	(1)
Burlington Industries, Inc. v. Ellerth	472	(13)
Problem 10.6	485	(1)
Stropes v. Heritage House Children's Ctr.	485	(12)
Vice-Principals: Who Acts as the Firm?	497	(1)
Problem 10.7	497	(1)
Hammerly Oaks, Inc. v. Edwards	498	(9)
Liability for Acts of Partners	507	(1)
Kelsey-Seybold Clinic v. Maclay	507	(3)
Kansallis Finance Ltd. v. Fern	510	(1)
Liability of Agents for Wrongful Conduct	510	(16)
Civil Liability	510	(1)
Wheeler v. Frito-Lay, Inc.	510	(4)
Fireman's Fund American Insurance Cos. v. Turner	514	(3)
Yates v. New South Pizza, Ltd.	517	(4)
Criminal Liability	521	(1)
State ex rel. Van Nguyen v. Berger	521	(5)
Additional Problems	526	(5)
Liability for Wrongful Acts of Independent Contractors	531	(62)
Non-Liability for Acts of Independent Contractors	531	(9)
Problem 11.1	531	(1)
Kane Furniture Corp. v. Miranda	531	(5)
Problem 11.2	536	(1)
Pamperin v. Trinity Memorial Hospital	536	(4)
Duties in Selecting and Supervising Independent Contractors	540	(4)
King v. Loessin	540	(2)
Problem 11.3	542	(1)
Redinger v. Living, Inc.	542	(2)
Non-Delegable Duties	544	(28)
Problem 11.4	544	(1)
Kleeman v. Rheingold	545	(8)
Problem 11.5	553	(1)
Huddleston v. Union Rural Electric Association	554	(15)
Brandt v. Missouri Pacific Railroad Co.	569	(3)
Apparent Authority/Estoppel	572	(18)
Problem 11.6	572	(1)
Sampson v. Baptist Memorial Hospital System	573	(14)
Volkman v. DP Associates	587	(3)
Additional Problems	590	(3)
Borrowed Servant Doctrine	593	(28)
Liability of Special Employer	593	(10)
Problem 12.1	593	(1)
Paoli v. Dave Hall, Inc.	594	(4)
Parker v. Vanderbilt University	598	(5)
Liability of the General Employer	603	(15)
Problem 12.2	603	(1)
Jefferson Smurfit Corp. v. JBS, Inc.	603	(3)
Strait v. Hale Construction Co.	606	(8)
City of Somerset v. Hart	614	(4)
Additional Problems	618	(3)
Ownership of the Firm	621	(56)
Ownership of the Firm versus Ownership of assets	621	(7)
Problem 13.1.	621	(1)
Problem 13.2	621	(1)
Putnam v. shoaf	622	(6)
Distributions on Liquidation	628	(14)
In General	628	(1)
Problem 13.3	628	(1)
Parker v. Northern Mixing Co.	629	(4)
Note on Firm Financial Statements	633	(3)
Problem 13.4	636	(1)
Service Partners	636	(1)
Problem 13.5	636	(1)
Becker v. Killarney	637	(3)
Parker v. Northern Mixing CO, (Part 2)	640	(2)
Interim Distributions	642	(4)
Problem 13.6	642	(1)
Brooke v. Mt. Hood Meadows Oreg., Ltd.	642	(4)
Rights of Assignees and Creditors	646	(27)
Assignments	646	(1)
Problem 13.7	646	(1)
Bauer v. The Blomfield Company/Holden Joint Venture	647	(5)
Charging Orders	652	(1)
Problem 13.8	652	(1)
91st Street Joint Venture v. Goldstein	653	(9)
PB Real Estate, Inc. v. DEM II Properties	662	(5)
Right to Dissolution	667	(1)
Problem 13.9	667	(1)
Baybank v. Catamount Construction, Inc.	667	(6)
Additional Problems	673	(4)
Dissociation of Agents from the Firm	677	(38)
Voluntary Terminations	677	(6)
Problem 14.1	677	(1)
Problem 14.2	677	(1)
Zukaitis v. Aetna Casualty & Surety Co.	678	(5)
Terminations by Operation of Law	683	(7)
Death	683	(1)
Problem 14.3	683	(1)
Estate of Krempasky	684	(1)
Incapacity	685	(1)
Campbell v. United States	685	(4)
Statutory Responses	689	(1)
Irrevocable Agencies	690	(13)
Problem 14.4	690	(1)
Voluntary Terminations	691	(1)
Lee v. O'Brien	691	(5)
Terminations by Operation of Law	696	(1)
Problem 14.5	696	(1)
Fidelity Bank v. Gorson	696	(7)
Post-Termination Fiduciary Duties	703	(9)
Problem 14.6	703	(1)
Prudential Insurance Company v. Crouch	704	(2)
ABKCO Music, Inc. v. Harrisongs Music, Ltd.	706	(6)
Additional Problems	712	(3)
Dissociation of Owners from the Firm	715	(56)
Power to Withdraw or to Dissolve	715	(13)
Problem 15.1	715	(1)
Problem 15.2	716	(1)
Problem 15.3	716	(2)
Canter's Pharmacy, Inc. v. Elizabeth Associates	718	(5)
Note on Withdrawal and Dissolution in Partnerships	723	(3)
Note on Withdrawal and Dissolution in Limited Partnerships	726	(1)
Note on Withdrawal and Dissolution in LLC's	727	(1)
Expulsions	728	(13)
Problem 15.4	728	(1)
Bohatch v. Butler Binion	728	(12)
Note on Effect of Expulsion	740	(1)
Note on Expulsions in Limited Partnership and Limited Liability Companies	741	(1)
Judicial Dissolutions	741	(7)
Owner Rights	741	(1)
Problem 15.5	741	(1)
Monteleone v. Monteleone	742	(5)
Note on Judicial Dissolution in Limited Partnership and Limited Liability Companies	747	(1)
Assignee Rights	748	(1)
Problem 15.6	748	(1)
Baybank v. Catamount Construction, Inc.	748	(1)
Fiduciary Limits on Rights to Dissolve or to Dissociate	748	(20)
Problem 15.7	748	(1)
Cadwalader, Wickersham & Taft v. Beasley	749	(8)
Konover Development Corp. v. Zeller	757	(11)
Problem 15.8	768	(1)
Rosenfeld, Meyer & Susman v. Cohen	768	(1)
Additional Problems	768	(3)
Dissolution and Winding Up of the Firm	771	(1)
Liquidation v. Buyout	771	(1)
Problem 16.1	771	(1)
Dreifuerst v. Dreifuerst	772	(4)
In Re Estate of Bolinger	776	(5)
Creel v. Lilly	781	(16)
Distributions on Liquidation	797	(1)
In General	797	(1)
Problem 16.2	797	(1)
Parker v. Northern Mixing Co.	797	(1)
Note on Firm Financial Statements	797	(1)
Problem 16.3	797	(1)
Service Partners	797	(1)
Problem 16.4	797	(1)
Becker v. Killarney	797	(1)
Parker v. Northern Mixing Co. (Part 2)	797	(1)
Disputes about Partnership Property	797	(1)
Problem 16.5	797	(1)
In Re Estate of Bolinger (Part 2)	798	(2)
Problem 16.6	800	(1)
Salinas v. Rafati	801	(8)
Right to Wind Up	809	(8)
Problem 16.7	809	(1)
Problem 16.8	810	(1)
Investcorp, L.P. v. Simpson Investment Company, L.C.	810	(10)
Paciaroni v. Crane	820	(9)
Problem 16.9	829	(1)
Fiduciary Duties	829	(1)
Problem 16.10	829	(1)
Rosenfeld, Meyer & Susman v. Cohen	830	(10)
Obligations Arising before Dissociation or Dissolution	840	(1)
Problem 16.11	840	(1)
Bradford v. First National Bank	840	(5)
Obligations Arising after Dissociation or Dissolution	845	(1)
Problem 16.12	845	(1)
Palomba v. Barish	845	(1)
Problem 16.13	848	(1)
Problem 16.14	848	(1)
Wolfe v. East Texas Seed Co.	849	(4)
Additional Problems	853