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Case of a member of a manager-managed LLC
Eric is a member of a manager-managed LLC but is not a manager. This LLC invests in real estate and manages it as rental property in a college town. Eric has made several recommendations to the managers regarding property that he considers to be a good buy. Eric, however, seldom performed even the slightest investigation of the property before recommending it to the managing members. Eric also purchased a couple of rental properties on his own account, taking very careful and sneaky steps to ensure that the other members of the LLC did not learn of these purchases. Which duties has Eric violated?
a. Loyalty and careb. Good faith and fair dealingc. Loyalty, care, and good faith and fair dealingd. Loyaltye. None of these
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