Claimed he was shielded from liability by the firm

Assignment Help Financial Management

Reference no: EM132020663

1. Jacobsen and Kelly agreed to form an LLC. They filled out the appropriate paperwork and mailed it with their check to the secretary of state’s office. However, they made a mistake: instead of sending it to “Boston, MA”—Boston, Massachusetts—they sent it to “Boston, WA”—Boston, Washington. There is a town in Washington State called “Little Boston” that is part of an isolated Indian reservation. The paperwork got to Little Boston but then was much delayed. After two weeks, Jacobsen and Kelly figured the secretary of state in Boston, MA, was simply slow to respond. They began to use their checks, business cards, and invoices labeled “Jacobsen and Kelly, LLC.” They made a contract to construct a wind turbine for Pablo; Kelly did the work but used guy wires that were too small to support the turbine. During a modest wind a week after the turbine’s erection, it crashed into Pablo’s house. The total damages exceeded $35,000. Pablo discovered Jacobsen and Kelly’s LLC was defectively created and sought judgment against them personally. May Pablo proceed against them both personally?

2. Holden was the manager of and a member of Frost LLLP, an investment firm. In that capacity, he embezzled $30,000 from one of the firm’s clients, Backus. Backus sued the firm and Holden personally, but the latter claimed he was shielded from liability by the firm. Is Holden correct?

3. Bellamy, Carlisle, and Davidson formed a limited partnership. Bellamy and Carlisle were the general partners and Davidson the limited partner. They contributed capital in the amounts of $100,000, $100,000, and $200,000, respectively, but then could not agree on a profit-sharing formula. At the end of the first year, how should they divide their profits?

Reference no: EM132020663

Questions Cloud

What kind of patterns are in the distribution of earthquake : What kind of patterns are in the distribution of earthquake epicenters over the Earth's surface? Do they form lines, arcs, circles or clusters?

What is your muddiest point in geology class : What is your muddiest point in geology class? What is the difference between stress and strain?

What will be the value of fund at the end of year ten : At the end of year 7 $5,000,000 are used to cover an expense. What will be the value of the fund at the end of year 10?

Describe the transtheoretical model and stages involved : Describe the transtheoretical model and stages involved in healthy behavior change.Determine which motivational strategies are appropriate.

Claimed he was shielded from liability by the firm : Backus sued the firm and Holden personally, but the latter claimed he was shielded from liability by the firm.

Discuss the whether the proposed changes to accounting : Discuss the whether the proposed changes to accounting for leases as proposed in ED 242 Leases will bring accountability and transparency

Describe a hypothetical couple or family : Describe a hypothetical couple or family (choose one) and the issues and concerns one or the other brings to you. Identify three ethical challenges you might.

Discuss the importance of exercise and fitness : Apply health history assessment tools to determine risk factors and assess physical activity and exercise needs for various cohorts.

What annual interest rate per year compounded : What annual interest rate per year compounded annually, the deposits must be invested to have the amount required at the end of year 20.

User Account

All Pages