WESTERN STATE UNIVERSITY COLLEGE OF LAW AGENCY & PARTNERSHIPS SECTION 352A FALL 2007 PROFESSOR LEE COURSE SYLLABUS & POLICIES TEXTS Required: Corporations including Partnerships and Limited Liability Companies Tenth Edition Robert W. Hamilton and Jonathan R. Macey West Group Corporations and Other Business Associations Statutes, Rules and Forms Jeffrey D. Bauman 2007 Edition West Group Recommended: Agency, Partnerships & LLCs: Examples and Explanations Second Edition Daniel S. Kleinberger Aspen Publishing Agency Partnerships & LLCs Stephen M. Bainbridge Foundation Please bring the required texts to all classes. The “Casebook” assignments refer to the Hamilton, et al. casebook. Study the Restatement and Model Act provisions in the statutes book as they relate to the case materials for each class. The recommended texts offer deeper insights into the legal theories underlying law of unincorporated business entities. Copies of these texts are on reserve in the law library for your use. In addition, a number of weeks’ assignments include readings of cases not included in your casebook. You are required to obtain these cases either on the course website or in the Law Library and have them prepared for class discussion. OBJECTIVES This course is a survey of the law of various unincorporated business associations. Its purpose is to acquaint students with the fundamental legal elements of these business relationships and entities. Finally, this course will examine some of the types of commercial practices and economic policies that have shaped this area of business law. 1 AGENCY & PARTNERSHIPS FALL 2007 COURSE SYLLABUS & POLICIES EXAMINATIONS AND GRADING Each student will receive a numeric grade based an on-line midterm that will count as twenty-five (25) percent of the grade and the final will count as seventy-five (75) percent. The final examination will consist of a two-part essay question to be completed in three hours. The examinations will require analysis of the law and policy issues covered in the reading materials and class lectures. Both examinations will be “open book”, allowing students to bring and refer to whatever written materials they like. ATTENDANCE AND PARTICIPATION In this course, the cases will be analyzed and illuminated through students' answers to questions during class. Emphasis will be on the reasoning underlying the holdings in the cases, not simply the "black letter" rules derived from the holdings. This can lead to spirited and stimulating discussion, but only if the students are thoroughly prepared. You will, therefore, be expected to have carefully read and briefed each case in the weekly assigned reading. Unless otherwise instructed, you are responsible for all materials assigned in the reading list and you are expected to prepare the readings assigned on the syllabus, regardless of where we are on the syllabus in the class lectures or whether we have opportunity to cover all of the assigned readings in class. The syllabus may be revised at any time during the semester. Your attendance and participation in all classes is required. Failure to prepare will count as an absence. Students who miss more than four classes will be academically withdrawn from the course. OFFICE HOURS My office hours are by appointment only. You may make an appointment by contacting me by e-mail at crlee@wsulaw.edu. The purpose of an appointment should be to discuss questions you may have about the substantive law of the course. COURSE WEBSITE- MANDATORY ENROLLMENT I have prepared a course website on Lexis/Nexis Webcourses. Please enroll on the website as soon as possible. I will be regularly updating the website with articles, study materials, practice exams, links to sites of interest, etc. throughout the semester. You are responsible for checking the website regularly and you will be responsible for all materials posted on it. CLASSROOM POWERPOINT SLIDES I will post any PowerPoint presentations I use during a class on the course website after the class. The PowerPoint presentations are solely for the purpose of guiding classroom discussion and are not intended to substitute for a student outlining, reading, briefing or otherwise preparing for class. 2 AGENCY & PARTNERSHIP FALL 2007 COURSE SYLLABUS & POLICIES ASSIGNED READING: WEEK 1 – AUG 20 INTRODUCTION TO BUSINESS ASSOCIATIONS AND THE ROLE OF AGENCY Casebook pp. 1-25 Casebook pp. 178-180 WEEK 2 – AUG 27 AGENCY The Definition of Agency Additional Cases (links under Assignments on the Course Website): Gorton v. Doty, 69 P. 2d 136 (Idaho 1937) MJ & Partners Restaurant Limited Partnership v. Zadikoff, 10 F.Supp. 2d 922 (N.D. Ill. 1998) Gay Jensen Farms Co. v. Cargill, Incorporated, 309 N.W. 2d 285 (Minn. 1981) WEEK 3 – SEPT 3 AGENCY Duties of Agent to Principal: Fiduciary Duties Additional Cases (links under Assignments on the Course Website): Reading v. Regem, [1948] 2 KB 268 General Automotive Manufacturing Co. v. Singer, 120 N.W. 2d 659 (Wisc. 1963) Bancroft-Whitney Company v. Glen, 64 Cal. 2d 327 (Cal. 1966) Town & Country House & Home Service, Inc. v. Newbery, 147 N.E. 2d 724 (N.Y. 1958) Corroon v. Black-Rutters & Roberts, Inc. v. Hosch, 325 N.W. 883 (Wisc. 1982) WEEK 4- SEPT 10 AGENCY Duties of Principal to Agent Termination of Agency Principal’s Liability to Third Parties in Contract Authority of Agent: Actual, Implied and Apparent Additional Cases (links under Assignments on the Course Website): Mill Street Church of Christ v. Hogan, 785 S.W. 2d 263 (Ky. 1990) Karl Rove & Co. v. Thornburgh, 39 F.3d 1273 (5th Cir. 1994) Lind v. Schenley Industries, Inc., 278 F.2d 79 (3d Cir. 1960)(en banc). 3 AGENCY & PARTNERSHIP FALL 2007 COURSE SYLLABUS & POLICIES WEEK 5 – SEPT 17 AGENCY Principal’s Liability to Third Parties in Contract Authority of Agent: Inherent Additional Cases (links under Assignments on the Course Website): Watteau v. Fenwick, [1893] 1 Queen’s Bench 346 (1892) Kidd v. Thomas A. Edison, Inc., 239 Fed. 405 (S.D.N.Y. 1917) Ratification Additional Cases (links under Assignments on the Course Website): Botticello v. Stefanovicz, 411 A.2d 16 (1979) Estoppel Additional Cases (links under Assignments on the Course Website): Hoddeson v. Koos Bros., 135 A.2d 702 (App.Div. 1957) WEEK 6 – SEPT 24 AGENCY Principal’s Liability to Third Parties in Tort Employee versus Independent Contractor Additional Cases (links under Assignments on the Course Website): Humble Oil & Refining Co. v. Martin, 222 S.W.2d (Tex. 1949) Hoover v. Sun Oil Co, 212 A.2d 214 (Del. 1965) Murphy v. Holiday Inns, Inc., 219 S.E.2d 874 (Va. 1975) Parker v. Domino's Pizza, 629 So.2d 1026 (Fla.Dist.Ct.of Appeal, 4th Dist. 1993) Billops v. Magness Constr. Co. 391 A.2d 196 (Del. 1978) Brill v. Davajon, 201 N.E. 2d 253 (Ill. 1964) Ira S. Bushey & Sons, Inc. v. United States, 398 F.2d 167 (2d Cir. 1968) Jackson v. Righter, 891 P.2d 1387 (Utah 1995) Manning v. Grimsley, 643 F.2d 20 (1st Cir. 1981) Kaletha v. Hall Mercantile Company, 196 N.W. 261 (Minn. 1923) Kleeman v. Rheingold, 614 N.E.2d 712 (N.Y. Ct of Appeals 1993) Majestic Realty Assoc. v. Toti Contracting Co., 153 A.2d 321 (N.J. 1959) Anderson v. Marathon Petroleum Co., 801 F.2d 936 (7th Cir. 1986) 4 AGENCY & PARTNERSHIP FALL 2007 COURSE SYLLABUS & POLICIES WEEK 7 – OCT 1 PARTNERSHIP Formation and Operation Casebook pp. 26-35 Casebook pp. 125-130 Law Firm Partnerships and Limited Liability Partnerships Casebook pp. 35-54 Management of the Partnership Casebook pp. 54-67 Additional Cases (links under Assignments on the Course Website): Summers v. Dooley, 481 P.2d 318 (Id. 1971) Moren ex rel. v. JAX Restaurant, 679 N.W. 2d (Minn.App. 2004) Day v. Sidley & Austin, 394 F.Supp. 986 (D.D.C. 1975) WEEK 8 – OCT 8 PARTNERSHIP Fiduciary Obligations of Partners Casebook pp. 67-74 Partnership Property Casebook pp. 74-77 Additional Cases (links under Assignments on the Course Website): Putnam v. Shoaf, (620 S.W.2d 510 (Ct. App. Tenn. 1981) Partnership Accounting Casebook pp. 77-84 Partnership Dissolution Casebook pp. 84-107 WEEK 9 – OCT 15 PARTNERSHIP Partnership Dissolution Casebook pp. 107-125 5 AGENCY & PARTNERSHIP FALL 2007 COURSE SYLLABUS & POLICIES WEEK 10 – OCT 22 LIMITED PARTNERSHIPS Casebook pp. 131-162 WEEK 11- OCT 29 LIMITED LIABILITY COMPANIES Casebook pp. 163-177 Formation Additional Cases (links under Assignments on the Course Website): Water, Waste & Land, Inc. v. Lanham, 955 P.2d 997 (Col. 1998) Piercing the LLC Veil WEEK 12 – NOV 5 LIMITED LIABILITY COMPANIES Fiduciary Obligations of Members Additional Cases (links under Assignments on the Course Website): McConnell v. Hunt Sports Enterprises, 725 N.E. 2d 1193 (Ohio 1999) VGS, Inc. v. Castiel, 2000 WL 1277372 (Del. Ch. 2000) Walker v. Resource Development Co., 2000 WL 1336720 (Del. Ch. 2000) WEEK 13 – NOV 12 LIMITED LIABILITY COMPANIES Dissolution Additional Cases (links under Assignments on the Course Website): New Horizons Supply Cooperative v. Haack, 590 N.W.2d 282 (Wisc. 1999) The Dunbar Group, LLC v. Tignor, 593 S.E. 216 (Va. 2004) Investcorp, L.P. v. Simpson Investment Co., 983 P.2d 265 (Kan. 1999) WEEK 14 _NOV 19 FINAL REVIEW-Reading Week (to be scheduled) FINAL EXAMINATION– (to be scheduled) Thanksgiving Break NOV 22-25- Last Day of Classes NOV 27 6