bayern 00 fmt auto 11/11/13 12:07 PM Page iii
Closely Held Organizations
Shawn J. Bayern
Carolina Academic Press
Durham, North Carolina
bayern 00 fmt auto 11/11/13 12:07 PM Page iv
Copyright © 2014
Shawn J. Bayern
All Rights Reserved
Library of Congress Cataloging-in-Publication Data
Bayern, Shawn.
Closely held organizations / Shawn J. Bayern.
pages cm
Includes bibliographical references and index.
ISBN 978-1-61163-364-1 (alk. paper)
1. Business enterprises--Law and legislation--United States. 2. Close corporations-United States. 3. Partnership--United States. I. Title.
KF1355.B39 2013
346.73'0668--dc23
2013027054
Carolina Academic Press
700 Kent Street
Durham, North Carolina 27701
Telephone (919) 489-7486
Fax (919) 493-5668
www.cap-press.com
Printed in the United States of America
bayern 00 fmt auto 11/11/13 12:07 PM Page v
For my students (literally)
bayern 00 fmt auto 11/11/13 12:07 PM Page vi
bayern 00 fmt auto 11/11/13 12:07 PM Page vii
Contents
Table of Cases
xi
Table of Codes, Restatements, and Statutes
xvii
Author’s Note and Acknowledgments
xxi
Chapter 1 · Agency: Basic Matters
Section 1: Basic Contractual Authority
Note on the Purposes of Agency Law
Note on Terminology in Agency Law
Note on Actual Authority
Note on Apparent Authority
Note on Agency by Estoppel
Note on the Consequences of Authority
Curto v. Illini Manors, Inc.
Note on Agency Creation
Note on Inherent Authority
Note on Ratification
Johnson v. Hospital Service Plan
Peter Tiersma, The Language of Silence
Note on Terminating an Agency Relationship
Section 2: The Agent’s Duty of Care
Carrier v. McLlarky
Oxford Shipping Co. v. New Hampshire Trading Corp.
Section 3: The Agent’s Duty of Loyalty
Note on Remedies for an Agent’s Breach of Fiduciary Duties
Reading v. Regem
Note on Reading v. Regem
Town & Country House & Home Service v. Newbery
Section 4: The Principal’s Duty of Indemnification
Admiral Oriental Line v. United States
Note on Subagents and Coagents
Section 5: Notice and Imputation of Knowledge
Note on Imputation of Knowledge to a Principal
Note on Legal Notification to Agents
Section 6: Temporary and Ambiguous Principals, and the Flexibility
of Agency Law
Norby v. Bankers Life Company of Des Moines, Iowa
3
3
3
4
5
6
7
7
9
15
15
16
17
22
24
25
26
28
31
32
33
35
36
40
40
42
43
43
44
vii
45
45
bayern 00 fmt auto 11/11/13 12:07 PM Page viii
viii
CONTENTS
Chapter 2 · Agency and Tort: Respondeat Superior
Section 1: Agents and Employees
Note on the Justifications of Respondeat Superior
Note on Terminology
Heims v. Hanke
Section 2: Employees Versus Independent Contractors
Section 3: Scope of Employment
Christensen v. Swenson
Fiocco v. Carver
Note on Scope of Employment
Ira S. Bushey & Sons, Inc. v. United States
Lisa M. v. Henry Mayo Newhall Memorial Hospital
Note on Employee Liability
Problem
Section 4: Temporary Employees
Charles v. Barrett
Section 5: Tort Liability for Principals Outside the Scope of Employment
1. Principals Directing Agents’ Tortious Conduct
2. Ratification
EEOC v. Federal Express Corp.
3. Nondelegable duties
Note on Nondelegable Duties and Strict Liability in Tort Law
4. Tortious Misrepresentations and Apparent Employees
49
49
49
50
51
53
54
54
58
60
61
64
75
76
76
76
77
77
78
78
82
82
83
Chapter 3 · General Partnerships
Section 1: Background and Uniform Laws
Section 2: Formation of General Partnerships
Martin v. Peyton
Note on Debt and Equity
Section 3: Partnership by Estoppel
Section 4: What Exactly Is a Partnership?
Fairway Development Co. v. Title Insurance Co. of Minnesota
Section 5: Authority in Partnerships
RNR Invs. Ltd. P’ship v. Peoples First Cmty. Bank
Section 6: Control
Summers v. Dooley
National Biscuit Co. v. Stroud
Section 7: Partnership Property
Section 8: Accounting
Note on Partnership Accounts
Note on Profit and Loss Sharing
Problem 1
Problem 2
Note on Distributions
Note on the Basics of Partnership Taxation
Section 9: A Partner’s Fiduciary Duties
Meinhard v. Salmon
Section 10: The Liability of a Partnership for the Activities of a Partner
Moren v. Jax Rest.
85
85
86
89
91
92
93
94
96
100
103
104
106
108
110
110
111
111
112
112
112
112
115
120
121
bayern 00 fmt auto 11/11/13 12:07 PM Page ix
CONTENTS
ix
Section 11: Individual Partners’ Liability for Partnership Obligations
Section 12: The Partner’s Partnership Interest
Bauer v. Blomfield Company/Holden Joint Venture
Section 13: The Dissociation of a Partner
Girard Bank v. Haley
Page v. Page
Note on the Consequences of Dissociation
Section 14: The Buyout of a Partner’s Share After Dissociation
Drashner v. Sorenson
Note on RUPA’s Buyout Provisions
Note on Business Valuation
Warnick v. Warnick
Section 15: Winding Up and Termination
Note on Winding Up and Termination
Creel v. Lilly
Note on Capital Accounts and Termination
Kovacik v. Reed
Problem
123
125
126
131
133
135
138
140
140
145
146
148
151
151
152
161
162
165
Chapter 4 · Other Partnership Forms
Section 1: The Limited Liability Partnership
Note on Terminology
Note on Limited Liability Partnerships
Ederer v. Gursky
Section 2: The Limited Partnership: Introduction and Limited Liability
Donald J. Weidner, The Existence of State and Tax Partnerships:
A Primer
Note on the Uniform Limited Partnership Acts
Holzman v. De Escamilla
Section 3: The Limited Partnership: Fiduciary Duties
Gotham Partners, L.P. v. Hallwood Realty Partners, L.P.
167
167
168
169
170
177
Chapter 5 · Closely Held Corporations
Section 1: Background on Corporation Law
Section 2: Corporate Structure: The Board of Directors
Charlestown Boot & Shoe Co. v. Dunsmore
Section 3: Electing the Board
Schnell v. Chris-Craft Industries, Inc.
Ringling Bros.–Barnum & Bailey Combined Shows, Inc. v. Ringling
Section 4: Corporate Purpose and the Practical Power of the Board
Dodge v. Ford Motor Co.
Note on Dodge v. Ford and the Power of Controllers
Lynn Stout, Why We Should Stop Teaching Dodge v. Ford
Section 5: Special Protections for Minority Shareholders in
Closely Held Corporations
Donahue v. Rodd Electrotype Co.
Meiselman v. Meiselman
193
193
194
195
196
198
200
209
210
215
218
178
179
181
183
183
219
219
230
bayern 00 fmt auto 11/11/13 12:07 PM Page x
x
CONTENTS
Chapter 6 · Limited Liability Companies
Section 1: Management and Authority
Section 2: Fiduciary Duties
Pappas v Tzolis
Solar Cells, Inc. v. True N. Partners LLC
VGS, Inc. v. Castiel
Section 3: Dissolution
3.1: Dissolution for Deadlock
Fisk Ventures, LLC v. Segal 2009
Matter of 1545 Ocean Ave., LLC
3.2: Dissolution for Oppression
Sandra K. Miller, What Buy-Out Rights, Fiduciary Duties,
and Dissolution Remedies should Apply in the Case of the
Minority Owner of a Limited Liability Company?
3.3: Distributions of Assets and Profits After Dissolution
Section 4: “Series” LLCs
Section 5: Litigation Procedure in LLCs
243
245
251
257
260
267
272
273
273
279
286
Chapter 7 · Nonprofits and Related Organizational Forms
Section 1: Nonprofit Organizations: Nature, Theory, and Organization
Henry B. Hansmann, The Role of the Nonprofit Enterprise
Section 2: Vicarious Liability in Nonprofit Organizations
Smith & Edwards v. Golden Spike Little League
Section 3: Fiduciary Duties in Nonprofit Organizations
Section 4: Hybrid Organizations
Dana Brakman Reiser, Governing and Financing Blended Enterprise
293
293
293
296
296
299
300
301
Index
311
286
288
289
290
bayern 00 fmt auto 11/11/13 12:07 PM Page xi
Table of Cases
In re 1545 Ocean Ave., L.L.C., 893
N.Y.S.2d 590 (N.Y. App. Div. 2010),
279
93 Clearing House v. Khoury, 415 A.2d
671, 673 (N.H. 1980), 27
Admiral Oriental Line v. United States,
86 F.2d 201 (2d Cir. 1936), 40
Aldridge v. Franco Wyo. Oil Co., 7 A.2d
753 (Del. Ch. 1939), 204
Alma W. v. Oakland Unified Sch. Dist.,
176 Cal. Rptr. 287 (Cal. App. 1981),
70
Am. Hardware Corp. v. Savage Arms
Corp., 135 A.2d 725 (Del. 1957), 199
Amcore Bank v. Hahnaman-Albrecht,
Inc., 759 N.E.2d 174 (Ill. 2001), 10, 13
Anastos v. Sable, 819 N.E.2d 587 (Mass.
2004), 150
Anderson v. Lemon, 8 N.Y. 236 (1853),
117
In re Arrow Inv. Advisors, L.L.C., 2009
Del. Ch. LEXIS 66 (Del. Ch. Apr. 23,
2009), 283–84
Bauer v. Blomfield Company/Holden
Joint Venture, 849 P.2d 1365 (Alaska
1993), 126, 130
Beatty v. Guggenheim Exploration Co.,
225 N.Y. 380 (1919), 117–18
Beck v. Howard, 178 N.W. 579 (S.D.
1920), 144
Becker v. Killarney, 532 N.E.2d 931 (Ill.
1988), 164
Belle Isle Corp. v. Corcoran, 49 A.2d 1
(Del. Ch. 1946), 204
Birkner v. Salt Lake Cnty., 771 P.2d
1053(Utah 1989), 55–57
Birnbaum v. Birnbaum, 539 N.E.2d 574
(N.Y. 1989), 257
Blankfeld v. Richmond Health Care, Inc.,
902 So. 2d 296 (Fla. Dist. Ct. App.
2005), 12
Boykin v. District of Columbia, 484 A.2d
560 (D.C. 1984), 69
In re Brown, 150 N.E. 581 (N.Y. 1926),
117
Brown v. Burlington Indus., 378 S.E.2d
232 (N.C. 1989), 81
Brown v. Kerber Packing Co., 97 N.E.2d
117 (Ill. 1951), 10
Brown v. Poritzky, 283 N.E.2d 751 (N.Y.
1972), 30
Buckholtz v. MacNeal Hosp., 785 N.E.2d
162 (Ill. 2003), 10
Buhl v. Viera, 102 N.E.2d 774 (Mass.
1952), 30
Burns Bros. v. Cent. R. Co., 202 F.2d 910
(2d Cir. 1953), 64
Burns v. Gonzalez, 439 S.W.2d 128 (Tex.
Civ. App. 1969), 97
Capital Plumbing & Heating Supply Co.
v. Snyder, 275 N.E.2d 663 (Ill. 1971),
10
Capitola v. Minneapolis, S.P. & S.S.M.R.
Co., 103 N.W.2d 867 (Minn. 1960),
30
Career Concepts, Inc. v. Synergy, Inc.,
865 N.E.2d 385 (Ill. 2007), 13
Carolina Equip. & Parts Co. v. Anders,
144 S.E.2d 252 (N.C. 1965), 81
Carr v. Wm. C. Crowell Co., 171 P.2d 5
(Cal. 1946), 63, 66–68
Carrier v. McLlarky, 693 A.2d 76 (N.H.
1997), 26
Cassels v. Stewart, [1881] 6 App. Cas. 64
(H.L.), 117
xi
bayern 00 fmt auto 11/11/13 12:07 PM Page xii
xii
TABLE OF CASES
Centro Empresarial Cempresa S.A. v.
Am. Móvil, S.A.B. de C.V., 952
N.E.2d 995 (N.Y. 2011), 258
Charles v. Barrett, 135 N.E. 199 (N.Y.
1922), 76
Charlestown Boot & Shoe Co. v. Dunsmore, 60 N.H. 85 (1880), 195
Chew v. Inverness Mgmt. Corp., 352
A.2d 426 (Del. Ch. 1976), 207
In re Chilson, 168 A. 82 (Del. 1933), 204
Christensen v. Swenson, 874 P.2d 125
(Utah 1994), 54, 60
Clark v. Jones, 84 Tenn. 351 (1886), 41
Clegg v. Edmondson, 8 De G. M. & G.
787 (Ch. App. 1857), 117
Commercial Hotel v. Weeks, 254 S.W.
521 (Tex. Civ. App. 1923), 97
Cory Bros. & Co. v. United States, 51
F.2d 1010 (2d Cir. 1931), 41
Cox v. NAP Constr. Co., 891 N.E.2d 271
(N.Y. 2008), 259
Crawford Sav. & Loan Ass’n v. Dvorak,
352 N.E.2d 261 (Ill. 1976), 13
Creel v. Lilly, 729 A.2d 385 (Md. 1999),
152, 160
Crocker v. Waltham Watch Co., 53
N.E.2d 230 (Mass. 1944), 223
Cromer Fin. Ltd. v. Berger, 245 F. Supp.
2d 552 (S.D.N.Y. 2003), 44
Curto v. Illini Manors, Inc., 940 N.E.2d
229 (Ill. App. Ct. 2010), 9
Cutler v. Cutler (In re Cutler), 165 B.R.
275 (Bankr. D. Ariz. 1994), 155
Dickerson v. Longoria, 995 A.2d 721
(Md. 2010), 11
Dilli v. Johnson, 107 F.2d 669 (D.C.
1939), 75
Dixon v. Crawford, McGilliard, Peterson & Yelish, 262 P.3d 108 (Wash. Ct.
App. 2011), 147
Dodge v. Ford Motor Co., 170 N.W. 668
(Mich. 1919), 210, 223
Doe v. Samaritan Counseling Ctr., 791
P.2d 344 (Alaska 1990)), 69
Donahue v. Rodd Electrotype Co., 328
N.E.2d 505 (Mass. 1975), 219, 240
Drashner v. Sorenson, 63 N.W.2d 255
(S.D. 1954), 140
Driscoll v. Towle, 181 Mass. 416 (1902),
77
Duell v. Hancock, 443 N.Y.S.2d 490
(N.Y. App. Div. 1981), 104
Dunbar Group, L.L.C. v. Tignor, 593
S.E.2d 216 (Va. 2004), 283
Durfee v. Durfee & Canning, Inc., 80
N.E.2d 522 (Mass. 1948), 224
eBay Dom. Holdings, Inc. v. Newmark,
16 A.3d 1 (Del. Ch. 2010), 217
Ederer v. Gursky, 881 N.E.2d 204 (N.Y.
2007), 170
EEOC v. Fed. Express Corp., 188 F.
Supp. 2d 600 (E.D.N.C. 2000), 78
Elfstrom v. N.Y. Life Ins. Co., 432 P.2d
731 (Cal. 1967), 47
Elmore v. Blume, 334 N.E.2d 431 (Ill.
1975), 13
Emmenegger Constr. Co. v. King, 431
N.E.2d 738 (Ill. 1982), 13
Fairway Dev. Co. v. Title Ins. Co., 621 F.
Supp. 120 (N.D. Ohio 1985), 94, 96
Farmers Ins. Group v. Cnty. of Santa
Clara, 906 P.2d 440 (Cal. 1995), 68,
72
Fettes, Love & Sieben, Inc. v. Simon, 196
N.E.2d 700 (Ill. 1964), 10
Fielbon Dev. Co. v. Colony Bank, 660
S.E.2d (Ga. Ct. App. 2008), 249
Fields v. Sanders, 180 P.2d 684 (Cal.
1947), 63, 68
Fiocco v. Carver, 137 N.E. 309 (N.Y.
1922), 58, 60
Fisk Ventures, L.L.C. v. Segal, Civil Action No. 3017-CC, 2009 Del. Ch.
LEXIS 7 (Del. Ch. Jan. 13, 2009).,
273, 284
Five Points Health Care, Ltd. v. Mallory,
998 So. 2d 1180 (Fla. Dist. Ct. App.
2008), 12
Flynn v. Reaves, 218 S.E.2d 661 (Ga. Ct.
App. 1975), 122
Frank v. Bd. of Educ., 100 A. 211 (N.J.
1917), 19–20
Galler v. Galler, 203 N.E.2d 577 (Ill.
1964), 221–23
Gildon v. Simon Prop. Group, Inc., 145
P.3d 1196 (Wash. 2006), 124
bayern 00 fmt auto 11/11/13 12:07 PM Page xiii
TABLE OF CASES
Giordano v. Stark, 645 N.Y.S.2d 517
(N.Y. App. Div. 1996), 286
Girard Bank v. Haley, 332 A.2d 443 (Pa.
1975), 133
Glidden v. Butler, 288 A.2d 695 (N.H.
1972), 31
Goergen v. Nebrich, 174 N.Y.S.2d 366
(N.Y. Sup. Ct. 1958), 156
Goliger v. AMS Props., Inc., 19 Cal.
Rptr. 3d 819 (Cal. App. 2004), 11, 14
Gotham Partners, L.P. v. Hallwood Realty Partners, L.P., 817 A.2d 160
(Del. 2002), 183
Granite Props. L.P. v. Granite Inv. Co.,
581 N.E.2d 90 (Ill. 1991), 10
Gregg v. Bernards, 443 P.2d 166 (Or.
1968), 156
Griffith v. Owen, [1907] 1 Ch. 195, 117
Grotelueschen v. Am. Family Mut. Ins.
Co., 492 N.W.2d 131 (Wis. 1992),
122
Haley v. Talcott, 864 A.2d 86 (Del. Ch.
2004), 276
Hartell v. T.H. Simonson & Son, 113
N.E. 255 (N.Y. 1916), 77
Hartford Acci. & Indem. Co. v. Cardillo,
112 F.2d 11 (D.C. Cir. 1940), 63
Hartshorn v. State Farm Ins. Co., 838
N.E.2d 211 (Ill. 2005), 10
Harvey v. Grey Wolf Drilling Co., 542
F.3d 1077 (5th Cir. 2008), 245
Hawes v. Oakland, 104 U.S. 450 (1882),
213
Heims v. Hanke, 93 N.W.2d 455 (Wis.
1958), 50, 51, 297
Helms v. Duckworth, 249 F.2d 482
(D.C. Cir. 1957), 222
Henderson v. Bank of Australasia, 40
Ch. D. 170 (1888), 213
Hendley v. Springhill Mem’l Hosp., 575
So. 2d 547 (Ala. 1990), 69
Hogan v. Forsyth Country Club Co.,
340 S.E.2d 116 (N.C. 1986), 80
Holzman v. De Escamilla, 195 P.2d 833
(Cal. App. 1948), 181
Howe v. Buff., N.Y. & E.R. Co., 37 N.Y.
297 (1867), 41
Hunter v. Roberts, Throp & Co., 83
Mich. 63 (1890), 211
xiii
Hurley v. Ornsteen, 42 N.E.2d 273
(Mass. 1942), 16
IDT Corp. v. Morgan Stanley Dean Witter & Co., 907 N.E.2d 268 (N.Y.
2009), 259
In re, See name of party
Ins. Co. of N. Am. v. Anderson, 438 P.2d
265 (Idaho 1968), 30
Ira S. Bushey & Sons v. United States,
398 F.2d 167 (2d Cir. 1968), 61, 66
Jersey City Supply Co. v. Jersey City, 60
A. 381 (N.J. 1905), 20
Johnson v. Hosp. Serv. Plan, 135 A.2d
483 (N.J. 1957), 17
Johnson v. Noble, 608 N.E.2d 537 (Ill.
1992), 10
Johnson v. Ruark Obstetrics & Gynecology Assocs., 395 S.E.2d 85 (N.C.
1990), 81
Johnson, Clark & Co. v. Bernheim, 76
N.C. 139 (1877), 106–07
Kaycee Land & Livestock v. Flahive, 46
P.3d 323 (Wyo. 2002), 244
Kirksey v. Grohmann, 754 N.W.2d 825
(S.D. 2008), 283
Klein v. Weiss, 395 A.2d 126 (Md. 1978),
158
Kleinfeld v. Roburn Agencies, Inc., 60
N.Y.S.2d 485 (N.Y. App. Div. 1946),
38
Klondike Indus. v. Gibson, 741 P.2d
1161 (Alaska 1987), 129
Koehler v. Presque-Isle Transp. Co., 141
F.2d 490 (2d Cir. 1944), 62
Koricic v. Beverly Enters.—Neb., 773
N.W.2d 145 (Neb. 2009), 11
Kovacik v. Reed, 315 P.2d 314 (Cal.
1957), 162, 164
Kruger v. Gerth, 210 N.E.2d 355 (N.Y.
1965), 222
Krzysko v. Gaudynski, 242 N.W. 186
(Wis. 1932), 52
La Bonte v. White Constr. Co., 292
N.E.2d 352 (Mass. 1973), 16
Lazo v. Mak’s Trading Co., 644 N.E.2d
1350 (N.Y. 1994), 52
Leonbruno v. Champlain Silk Mills, 128
N.E. 711 (N.Y. 1920), 63
bayern 00 fmt auto 11/11/13 12:07 PM Page xiv
xiv
TABLE OF CASES
Leventhal v. Atl. Fin. Corp., 55 N.E.2d
20 (Mass. 1944), 223
Lieberman v. Wyoming.com L.L.C., 82
P.3d 274 (Wyo. 2004), 149–50
Life Care Ctrs. of Am. v. Smith, 681
S.E.2d 182 (Ga. Ct. App. 2009), 11
Linowiecki v. Wisniewski, 249 Ill. App.
474 (1928), 11
Lisa M. v. Henry Mayo Newhall Mem’l
Hosp., 907 P.2d 358 (Cal. 1995), 64
Lujan v. Life Care Ctrs. of Am., 222 P.3d
970 (Colo. App. 2009), 11
Lyon v. Carey, 533 F.2d 649 (D.C. Cir.
1976), 74
Manitaras v. Beusman, 868 N.Y.S.2d
121 (N.Y. App. Div. 2008), 248
Martin v. Peyton, 158 N.E. 77 (N.Y.
1927), 89, 92
Mary M. v. City of L.A., 814 P.2d 1341
(Cal. 1991), 68, 70
Mataxas v. N. Shore Univ., 621 N.Y.S.2d
683, 684 (N.Y. App. Div. 1995), 69
Matter of Biss, 2 Ch. 40 (1903), 117
Matter of Surchin v. Approved Bus.
Mach. Co. Inc., 286 N.Y.S.2d 580
(N.Y. Sup. Ct. 1967), 222
McAllister v. Khie Sem Ha, 496 S.E.2d
577 (N.C. 1998), 82
McCormick v. Brevig, 96 P.3d 697
(Mont. 2004), 160
Meinhard v. Salmon, 164 N.E. 545 (N.Y.
1928), 113, 115, 224, 257
Meiselman v. Meiselman, 307 S.E.2d
551 (N.C. 1983), 230, 235, 240
Mervyn Inv. Co. v. Biber, 194 P. 1037
(Cal. 1921), 136
Miss. Care Ctr. of Greenville, L.L.C. v.
Hinyub, 975 So. 2d 211 (Miss. 2008),
11
Mitchell v. Reed, 61 N.Y. 123 (1874);
Mitchell v. Read, 84 N.Y. 556 (1881),
117
Moffett v. Life Care Ctrs. of Am., 187
P.3d 1140 (Colo. App. 2008), 12
Molina v. Hong (In re Extreme Wireless,
L.L.C.), 750 N.Y.S.2d 520 (N.Y. App.
Div. 2002), 285
Monticello Cmty. Care Ctr., L.L.C. v. Estate of Martin, 17 So. 3d 172 (Miss.
Ct. App. 2009), 12
Monty v. Orlandi, 337 P.2d 861 (Cal.
1959), 68
Moren v. JAX Rest., 679 N.W.2d 165
(Minn. 2004), 121
Mt. Holly Nursing Ctr. v. Crowdus, 281
S.W.3d 809 (Ky. Ct. App. 2008), 11
Mullis v. Mechs. & Farmers Bank, 994 F.
Supp. 680 (M.D.N.C. 1997), 80
N.J. Car-Spring & Rubber Co. v. Jersey
City, 46 A. 649 (N.J. 1900), 20
Nat’l Biscuit Co. v. Stroud, 106 S.E.2d
692 (N.C. 1959), 106
Nelson v. Am.-W. African Line, Inc., 86
F.2d 730 (2d Cir. 1936), 62
Nicholes v. Hunt, 541 P.2d 820 (Or.
1975), 138, 155
Nixon v. Blackwell, 626 A.2d 1366 (Del.
1993), 240
Norby v. Bankers Life Co., 231 N.W.2d
665 (Minn. 1975), 45
Orosco v. Sun-Diamond Corp., 60 Cal.
Rptr. 2d 179 (Cal. App. 1997), 123
Owen v. Cohen, 119 P.2d 713 (Cal.
1941), 136
Owens v. Nat’l Health Corp., 263
S.W.3d 876 (Tenn. 2007), 12
Oxford Shipping Co. v. N.H. Trading
Corp., 697 F.2d 1 (1st Cir. 1982), 28
Paciaroni v. Crane, 408 A.2d 946 (Del.
Ch. 1979), 104
Page v. Page, 359 P.2d 41 (Cal. 1961),
135
Palsgraf v. Long Island R. Co., 162 N.E.
99 (N.Y. 1928), 64
Pappas v. Tzolis, 982 N.E.2d 576 (N.Y.
2012), 257
Patton v. Nicholas, 279 S.W.2d 848 (Tex.
1955), 223
PC Tower Center, Inc. v. Tower Center
Dev. Assocs., 1989 Del. Ch. LEXIS 72
(Del. Ch. June 8, 1989), 276, 283
People ex rel. Metro. Life Ins. Co. v.
Hotchkiss, 120 N.Y.S. 649 (N.Y. App.
Div. 1909), 213
bayern 00 fmt auto 11/11/13 12:07 PM Page xv
TABLE OF CASES
People’s Coat, Apron & Towel Supply
Co. v. Light, 157 N.Y.S. 15 (N.Y. App.
Div. 1916), 38
Perez v. Van Groningen & Sons, 719
P.2d 676 (Cal. 1986), 66
Perry v. Mo.-Kan. Pipe Line Co., 191 A.
823 (Del. 1937), 204
Pleasants v. Barnes, 19 S.E.2d 627 (N.C.
1942), 81
Progress Printing Corp. v. Jane Byrne
Political Comm., 601 N.E.2d 1055
(Ill. App. Ct. 1992), 21
Racing Inv. Fund 2000, L.L.C. v. Clay
Ward Agency, Inc., 320 S.W.3d 654
(Ky. 2010), 271
Ratajczak v. Bd. of Educ., 177 A. 880
(N.J. 1935), 20
Reading v. Rex, [1948] 2 K.B. 268, 33
Ringling Bros. — Barnum & Bailey
Combined Shows, Inc. v. Ringling,
53 A.2d 441 (Del. 1947), 200
RNR Invs. Ltd. v. Peoples First Cmty.
Bank, 812 So. 2d 561 (Fla. Dist. Ct.
App. 2002), 100
Robinson v. Bradshaw, 206 F.2d 435
(D.C. Cir. 1953), 63
Robinson v. Jewett, 22 N.E. 224 (N.Y.
1889), 118
Rodgers v. Kemper Constr. Co., 124 Cal.
Rptr. 143 (Cal. App. 1975), 66–68
Rodriguez v. Casey, 50 P.3d 323 (Wyo.
2002), 149
Roe v. Ladymon, 318 S.W.3d 502 (Tex.
App. 2010), 169
Rosenthal v. Rosenthal, 543 A.2d 348
(Me. 1988), 114
S.W. Scott & Co. v. Scott, 174 N.Y.S. 583
(N.Y. App. Div. 1919), 38
Salm v. Feldstein, 799 N.Y.S.2d 104
(N.Y. App. Div. 2005), 257
Samia v. Cent. Oil Co., 158 N.E.2d 469
(Mass. 1959), 224
Samuels v. S. Baptist Hosp., 594 So. 2d
571 (La. Ct. App. 1992), 69
Schmidt v. Leary, 252 N.W. 151 (Wis.
1934), 52
Schnell v. Chris-Craft Indus., 285 A.2d
437 (Del. 1971), 198
xv
In re Sec. Fin. Co., 317 P.2d 1 (Cal.
1957), 137
Selwyn & Co. v. Waller, 212 N.Y. 507
(1914), 118
Serv. Commercial Body Works, Inc. v.
Dumont, 68 A.2d 892 (App. Div.
1949), 20
Shannon v. Hudson, 325 P.2d 1022 (Cal.
Ct. App. 1958), 136
Shoemaker v. Snow Crop Marketers
Div. of Clinton Foods, 258 P.2d 760
(Idaho 1953), 58
Silversmith v. Sydeman, 25 N.E.2d 215
(Mass. 1940), 224
Simmons v. United States, 805 F.2d 1363
(9th Cir. 1986), 69
Sladen, Fakes & Co. v. Lance, 66 S.E. 449
(N.C. 1909), 108
Smith & Edwards v. Golden Spike Little
League, 577 P.2d 132 (Utah 1978),
296
Sobol v. Les Pieds Nickels, Inc. (In re
Sobol), 692 N.Y.S.2d 336 (N.Y. App.
Div. 1999), 286
Solar Cells, Inc. v. True N. Partners,
L.L.C., 2002 Del. Ch. LEXIS 38 (Del.
Ch. Apr. 25, 2002), 260
Sovereign Healthcare of Tampa, L.L.C.
v. Estate of Huerta, 14 So. 3d 1033
(Fla. Dist. Ct. App. 2009), 12
Spiegel v. Beacon Participations, 8
N.E.2d 895 (Mass. 1937), 224
Steinway v. Steinway & Sons, 17 Misc.
43, 40 N.Y.S. 718 (N.Y. Sup. Ct.
1896), 213
Strino v. Premier Healthcare Associates,
P.C., 850 N.E.2d 221 (Ill. App. Ct.
2006), 13
Stropes by Taylor v. Heritage House
Childrens Ctr. of Shelbyville, Inc.,
547 N.E.2d 244 (Ind. 1989), 69
Summers v. Dooley, 481 P.2d 318
(Idaho 1971), 104
Taffi v. United States, 68 F.3d 306, 309
(9th Cir. 1995), 149
Taki v Hami, 2001 Mich App LEXIS 777
(Mich. Ct. App. May 4, 2001), 283
Tarman v. Southard, 205 F.2d 705 (D.C.
Cir. 1953), 75
bayern 00 fmt auto 11/11/13 12:07 PM Page xvi
xvi
TABLE OF CASES
Taunton v. Royal Ins. Co., (1864) 71
Eng. Rep. 413 (Ch.), 213
Taylor v. Cummer Lumber Co., 52 So.
614 (Fla. 1910), 102
Taylor v. Doctors Hosp., 486 N.E.2d
1249 (Ohio Ct. App. 1985), 69
Texas Cityview Care Center, L.P. v.
Fryer, 227 S.W.3d 345 (Tex. Ct. App.
2007), 11
The China, 74 U.S. 53 (1868), 64
Thomas v. Marvin E. Jewell & Co., 440
N.W.2d 437 (Neb. 1989), 104
Thorn v. City of Glendale, 35 Cal. Rptr.
2d 1 (Cal. App. 1994), 68
Torres v. Pisano, 116 F.3d 625 (2d Cir.
1997), 44
Tournier v. Nat’l Provincial & Union
Bank of Eng., [1924] 1 K.B. 461, 118
Town & Country House & Home Serv.,
Inc. v. Newbery, 147 N.E.2d 724
(N.Y. 1958), 36
Triad Health Mgmt. of Georgia, III, LLC
v. Johnson, 679 S.E.2d 785 (Ga. Ct.
App. 2009), 12
United States v. Schaltenbrand, 930 F.2d
1554 (11th Cir. 1991), 10
Vangel v. Vangel, 254 P.2d 919 (Cal.
App. 1953), 136, 138, 142
VGS, Inc. v. Castiel, 2000 Del. Ch.
LEXIS 122 (Del. Ch. Aug. 31, 2000),
267
Ward v. National Healthcare Corp., 275
S.W.3d 236 (Mo. 2009), 14
Warnick v. Warnick, 133 P.3d 997 (Wyo.
2006), 148
Westberg v. Willde, 94 P.2d 590 (Cal.
1939), 73
Wiersma v. City of Long Beach, 106 P.2d
45 (Cal. App. 1940), 70
Wilson v. Jennings, 184 N.E.2d 642
(Mass. 1962), 225
Witkop & Holmes Co. v. Boyce, 112
N.Y.S. 874 (N.Y. Sup. Ct. 1908), 38
Wolfe v. Harms, 413 S.W.2d 204 (Mo.
1967), 122
Zeibak v. Nasser, 82 P.2d 375 (Cal.
1938), 138, 142
Zulkee v. Wing, 20 Wis. 408 (1866), 30
bayern 00 fmt auto 11/11/13 12:07 PM Page xvii
Table of Codes, Restatements,
and Statutes
Model Business Corporation Act
§3.02 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 209, 216
§6.02. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 197
§7.3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 206
§7.31. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 207
§7.32. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 207
§8.01. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 194
§8.04. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 197
§8.06 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 196 –97
§8.08. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 197
§8.09. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 198
§8.1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 198
§8.3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 215
§8.31. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 215
§13.02. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 229
§14.3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 228
§14.34. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 241
Uniform Limited Liability Company Act (ULLCA)
§102 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 282
§104 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 293
§110 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 255
§112 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 130
§301 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 249
§402 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 249
§404 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 286
§407 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 245
§409. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 251– 54
§411 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 284, 285
§417 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 282
§603 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 286
§606 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 281
§701 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 272, 281
§708 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 288
§801 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 272
§901 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 290
§902 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 291
§903 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 291
§904 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 291
xvii
bayern 00 fmt auto 11/11/13 12:07 PM Page xviii
xviii
TABLE OF CODES, RESTATEMENTS, AND STATUTES
Uniform Limited Partnership Act (2001)
§7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 179
§112 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 254
§301 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 177 n.1
§302 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 177
§303 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 179
§401 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 177
§404(c). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 179
§408 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 183
§1002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 185 n.7
Uniform Partnership Act (1914)
§9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 98–99, 250
§15 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 123
§18 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 164, 173–74
§24 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 173
§26 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 170–76
§29 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 134
§34 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 173–74
§38 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 142–44
§40 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 161, 173–74
§43 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 175
§63 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 282
§65 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 173–74
§71 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 173–74
§74 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 173–76
Restatement (Second) of Agency
§1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
§8A. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 247
§13 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48
§15 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 113
§26 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66, 247
§43 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
§144 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47
§212 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 247
§214 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46, 77
§220 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82
§228 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54
§267 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10, 75
§272 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83
§317 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44
§320 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30
§376 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 169
§377 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
§379 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
§427 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30
§432 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
bayern 00 fmt auto 11/11/13 12:07 PM Page xix
TABLE OF CODES, RESTATEMENTS, AND STATUTES
xix
Restatement (Second) of Torts
§486 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30
§416-429 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82
Restatement (Third) of Agency
§2.01 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5, 15–16
§2.02. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6, 7
§2.03. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49
§2.04. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 247
§3.01. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 248
§3.03 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42–43
§3.15. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
§4.01. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
§4.05. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44
§5.01. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45
§5.02 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43–44
§5.03. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44
§5.04. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
§6.02. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76
§7.01. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 78
§7.04. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77
§7.05. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82
§7.06. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83
§7.08 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31–32
§8.01 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31–32
§8.02. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32
§8.03. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33, 36
§8.04. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
§8.05. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
§8.08. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 247
§8.13. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38
§8.14. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30
Revised Uniform Limited Partnership Act (1976)
§303 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 179–180
Revised Uniform Partnership Act (RUPA) (1997)
§101 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87
§103 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 114
§201 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 93, 96
§202 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87–88
§203 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 108
§204 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 109
§301. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 97– 98, 250
§303 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 99
§305 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 120
§306 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 124, 168
bayern 00 fmt auto 11/11/13 12:07 PM Page xx
xx
TABLE OF CODES, RESTATEMENTS, AND STATUTES
§307 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 124, 125
§308 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92
§317 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 125
§401 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 104, 110 & n.9, 111, 112, 125, 164, 248
§404 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 113, 252
§501 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 108
§502 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 126
§503 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 126
§601 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 131
§602 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 138, 144
§603 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 148
§701 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 93, 145, 148, 150, 160
§801. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 139, 151 & n.18, 160, 165
§802 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 165
§803 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 151
§807 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 148, 161–62
§808 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 148, 160
§1001 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 167
§1002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 168
Revised Uniform Unincorporated Nonprofit Association Act
§2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
§8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
§18 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
§23 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
297
298
299
299
bayern 00 fmt auto 11/11/13 12:07 PM Page xxi
xxi
Author’s Note and Acknowledgments
Cases have been edited liberally, with footnotes and citations often removed without
comment. Remaining footnotes are generally renumbered.
Thanks to Rob Atkinson, Jay Kesten, Mark Seidenfeld, Manuel Utset, and Don Weidner for many interesting discussions (and to Don for his wonderful support as dean).
Thanks also to Kat Klepfer, Katrina Miller, and Zach Lombardo for very helpful research
assistance.
Model Business Corporation Act copyright © 2011 by the American Bar Association.
Restatement Second, Agency, copyright © 1958 by the American Law Institute. All
rights reserved. Reprinted with permission.
Restatement Third, Agency, copyright © 2006 by the American Law Institute. All
rights reserved. Reprinted with permission.
Uniform laws copyright © by the National Conference of Commissioners on Uniform State Laws. Reprinted with permission.
Thanks also to the law reviews and other publishers that provided permission to
reprint several short excerpts.