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CHAPTER 1

BUSINESS ENTITIES - AGENCY


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I. INTRODUCTION TO AGENCY

II. CREATION OF AGENCY
A. Express Authority
1. General or Special Agency
2. Statute of Frauds
a. Land or Related
b. Over One Year
c. At Will Contract
d. Sales Representative
3. Express Authority Limitations
B. Implied or Inherent Authority
1. Business Manager
2. Salesperson
3. Deliveryperson
4. Purchase Agent
C. Apparent or Ostensible Authority
D. Estoppel
E. Ratification
1. Representation Necessary
2. Express or Implied
3. In Existence at Contract Date
F. Necessity
G. Miscellaneous
1. Capacity
a. Infant Agent
b. Infant Principal
c. Nondisclosure of Principal`s Incapacity
2. Business Entities

III. THIRD PARTY RELATIONSHIPS
A. Contract Liability
1. Liability of the Principal
2. Liability of the Agent
a. When an Agent is not Liable
b. When an Agent is Liable
3. Undisclosed, Partially Disclosed, and Disclosed Principals
a. No Apparent Authority
b. Liability of Agent and Undisclosed or Partially Disclosed Principal
c. Enforcement Power of an Undisclosed or Partially Disclosed Principal
d. Principal`s Rights
B. Tort Liability
1. Liability of the Principal
a. Employment Nexus
b. Independent Contractors
(1) Characteristics
(2) Non-Delegable Activities
c. Negligence Selection or Appointment
2. Liability of the Agent
C. Criminal Liability

IV. AGENT`S DUTIES
A. Fiduciary Duties
1. HOLT Basic Standard
2. Full Disclosure
3. Conflict of Interest
4. Delegation of Duties
B. Standard of Care
1. Obey Instructions
2. Inform Principal
3. Gratuitous Agent
C. Exceeding Express Authority
D. Shop Rights

V. PRINCIPAL`S DUTIES
A. Reimbursement and Indemnification
1. Reimburse Business Expenses
2. Indemnify for Liability
B. Safe Work Place
C. Compensation
1. Employee`s Wages
2. Double Damages
3. Attorney Fees
4. 30 Days Payment for Sales Agent
5. Agent`s Lien for Compensation
D. Assumption of Risk Abolished
E. Fellow Servant Rule

VI. TERMINATION OF AGENCY
A. Voluntary
1. Completion, Agreement, or Breach
2. Revocation or Renunciation
3. At-Will Employee
B. Involuntary ISIS
1. Incapacity or Death of Principal
2. Source of Agency Supply Destroyed
3. Illegality of Agency Agreement
4. Subject Matter of Agency Destroyed
C. Agency Coupled with an Interest
D. Notice to Creditors or Customers
1. Actual Notice to Past Customers
2. Constructive Notice to Third Parties

CHAPTER 1
BUSINESS ENTITIES - PARTNERSHIP
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I. INTRODUCTION TO PARTNERSHIP
A. RUPA In General
B. Definition
1. Types of Partnerships
2. Co-Owner Requirement
3. No Presumption
4. Share of Profits
5. Capital and Profit

II. PARTNERSHIP ENTITY ORGANIZATION
A. Requirements
1. Statement of Partnership Authority
2. Statement of Denial
3. Fictitious Name
4. Non-Waivable Provisions
B. Capacity
C. Formation Methods
1. Express
a. Statute of Frauds (SOF)
b. Contributions
c. Equal Capital Accounts
2. Implied
a. Sharing Profits
b. Other Situations
3. Estoppel

III. PROPERTY RIGHTS


A. Definition
B. ~Tenancy in Partnership
C. Partners` Ownership Interest
D. Charging Orders

IV. RIGHTS AND RELATIONS OF PARTNERS TO ONE ANOTHER
A. Fiduciaries
1. General DINA Loyalty Standards
a. Due Care
b. In Good Faith and Fair Dealings

c. Not Compete
d. Account for Partnership Benefits and Property
2. Liability of Violating Partner
B. Profit and Loss Sharing
C. Management Rule
1. Majority Rule
2. Unanimous Approval
3. Outside Ordinary Course
D. Right to Books and Records
E. Information
F. Indemnification
G. Action by Partnership and Partners

V. LIABILITY TO THIRD PARTIES
A. General Liability
B. Agency Rules
1. Contract Liability
a. Ordinary Course
b. Not in Ordinary Course
2. Tort Liability
3. No Fault Partnership Liability
C. 1oint and Several Liability
1. Partnership Creditors
2. Partner`s Creditors
D. Conveyance of Partnership Property
1. Property Held in Partnership`s Name
2. Property Held in Individual Partner`s Name
3. Real Property Transfer

VI. PARTNER DISSOCIATION
A. Dissociation Events
1. Express Will
2. Expulsion
a. By Partners
b. 1udicial
3. Insolvency
4. Death of Partner
B. Wrongful Dissociation
C. Dissociation Effect
D. Purchase of Dissociated Interest
1. Price

2. Non-Agreement
E. Dissociating Partner`s Ongoing Liability
1. Authority Terminates
2. Two-Year Window
3. Statement of Dissociation
4. Prior Obligations
5. Partner`s Name

VII. DISSOLUTION AND WINDUP
A. Events Causing Dissolution
1. Partnership Agreement
2. Illegality
3. 1udicial Determination
B. Partnership Continues After Dissolution
1. Purpose
2. Participation
3. Liability
4. Statement of Dissolution
C. Distribution Priority
D. Settlement and Contribution Right

VIII. CONVERSION AND MERGERS

IX. LIMITED PARTNERSHIPS
A. Background / Formation / Records and Reports
1. Formation / Certificate of Limited Partnership
a. Name
b. Office for Records and Registered Agent
c. General Partner
d. Formation
2. Partnership Agreement
3. Annual Reports
4. Security Registration
5. Foreign Limited Partnerships
B. Limited Partners
1. Becoming a Limited Partner
2. No Power to Bind the LP
3. Limited Liability
4. Right to Information
5. Limited Duties of a Limited Partner
C. General Partners

1. Becoming a General Partner


2. General Partner as Agent for the LP
3. Liability of a General Partner
4. Management Rights
5. Duties of the General Partner
a. Loyalty
b. Care
D. Dual Capacity; Certain Rights
1. Dual Capacity
2. Derivative Action
3. Dissenter Rights
E. Ownership Interests; Transfers, Etc.
1. Distributions
2. Transfers
F. Dissociation
1. Limited Partners
a. No Right to Dissociate
b. Events Causing a Limited Partner to Dissociate
c. Effect of Dissociation
2. General Partners
a. Events Causing a General Partner to Dissociate
b. Wrongful Dissociation
c. Effect of Dissociation
d. Power to Bind the LP after Dissociation
e. Liability after Dissociation
G. Dissolution
1. Dissolution Events
2. Windup
a. Activities Related to Windup
b. Known Claims
c. Unknown Claims
d. Distribution of Assets
e. Contribution by General Partners
3. Administrative Dissolution
a. Procedure
b. Reinstatement
H. Limited Liability Limited Partnerships
1. General
2. Effect

CHAPTER 1
BUSINESS ENTITIES - CORPORATIONS
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I. INTRODUCTION TO CORPORATIONS

II. FORMATION PROCESS
A. Incorporator / Promoter
1. Fiduciary Status
2. Personal Liability
3. Undisclosed Principal
4. Compensation
5. Corporate Liability
B. Articles of Incorporation
1. Name Reservation
2. Contents
a. Required Information RINS
(1) Registered Office and Agent
(2) Incorporator(s)
(3) Name
(4) Stock Information
b. Optional Information - BICE
c. Compliance
3. Article Amendments
C. De Facto Corporations
1. Legislative History
2. Case Authority
D. Corporation by Estoppel
E. Organizational Meeting
F. Bylaws and Reports
1. Bylaws
2. Initial Report
G. Annual Report
H. Hierarchy of Authority

III. DOMESTIC OR FOREIGN STATUS
A. Nexus to State
1. Excluded Transactions
2. Fixed Facility
B. Consequences of Transacting Business
C. Effect on Legal Actions

D. Long-Arm Statutes

IV. CORPORATE LIABILITY
A. Registered Agent
B. General Liability
C. Purpose and Powers
1. Any Lawful Purpose
2. ~Ultra Vires
a. Application
b. Third Parties

V. DIRECTORS AND OFFICERS
A. Board of Directors
1. Elections Appointment
a. Cumulative Voting Rule
b. Removal
c. Replacement
2. Dividends
3. Board Meetings
a. Regular Meetings
b. Special Meetings
c. Voting Proxy
d. Action Without Meeting
e. Electronic Transmissions
4. Fiduciary Duties
a. Member Duties
b. Conflict of Interest - CUT
(1) Competing With Corporation
(2) Usurping Corporate Opportunity
(3) Trade Secret Appropriation
c. Interested Transactions
(1) Director Approval
(2) Shareholder Approval
(3) Applicability
d. Corporate Remedies
B. Officers
1. Corporate Officers
2. Dismissal and Fiduciary Duties
3. Annual Certification
C. Personal Liability of Directors and Officers
D. Business 1udgment Rule

1. Reasonable Reliance
2. Criteria Applied
E. Indemnification Agreements
1. Types of Indemnification
a. Mandatory Indemnification
b. Permissive Indemnification
(1) Standards
(2) Process
c. Shareholder Indemnification
d. Court Ordered Indemnification
2. Shareholder Report Requirement

VI. STOCK SHARES
A. Stock Subscriptions
1. Irrevocable for 6 Months
2. Requirements
3. Default and Forfeiture
4. Stock Warrant, Option, or Right
B. Payment for Shares
C. Negotiable Securities
1. Stock Restrictions
2. Transfer Details
3. Lost Certificates
D. Preemptive Rights
1. Washington Rule
2. Revised Act Provision
E. Other Definitions
1. Par Value and Stated Capital Eliminated
2. Authorized Shares
3. Outstanding Shares
4. Redeemed Shares
a. Cancellation
b. Treasury Shares
5. Preferred Shares
a. Cumulative Preferred
b. Participating Preferred
c. Convertible Preferred

VII. SHAREHOLDER RIGHTS
A. Meetings and Voting
1. Shareholder Meetings

2. Court-Ordered Meeting
3. Notice of Meetings
a. Time Requirements
b. Notice Waiver
4. Shareholder Lists and Resolutions
5. Voting in Person or Proxy
6. Quorum Requirements
7. Electronic Transmissions
8. Action Without Meeting
9. Voting Trusts and Agreements
10. Other Rights
B. Records and Financial Statements
1. Corporate Records
2. Financial Statements
3. Inspection Right
a. Written Demand
b. No Minimum Ownership
4. Corporate Refusal
C. Legal Remedies
1. Direct Action
2. Shareholder`s Derivative Action
a. Standing
b. Procedure
c. Legal Expenses
3. Business 1udgment Rule
D. Shareholder Decision Control
1. Ordinary Decisions
2. Fundamental Changes
E. Dissenter or Appraisal Rights
1. Right to Dissent
2. Procedure
3. Fair Value
4. Appraisal Value Contest
5. Minority Shareholder`s Relief
F. Dividends
1. Declaration
2. Relative Rights

VIII. SHAREHOLDER LIABILITY
A. General Rule
B. Statutory Liability

1. Subscription Agreement
2. Insolvency
a. Certain Distributions and Contributions
b. Statute Of Limitations
C. Equitable Liability
1. Concurrent Affiliates
2. Successor Affiliates
3. Pierce Corporate Veil - FAL
a. Fraud
b. Alter Ego
c. Loan Subordination
4. Estoppel

IX. MERGERS, SHARE EXCHANGE, AND AFFILIATED GROUPS


A. Mergers
1. Plan of Merger
2. Articles of Merger
3. Fundamental Change
B. Consolidations
C. Holding Companies and Subsidiaries
D. Significant Business Transactions
1. Hostile Takeover Protections
2. Included Targets
3. Procedure
4. Highest Price Duty
5. Post-Acquisition Restrictions
E. Synergistic Factors
1. Horizontal Combinations
2. Vertical Combinations
3. Conglomerate Combinations

X. LIQUIDATIONS AND DISSOLUTIONS


A. Liquidations
B. Dissolution
1. Voluntary Dissolution
a. Resolution and Shareholder Approval
b. Articles of Dissolution
c. Creditors` Claims
(1) Rejected Claims
(2) Unknown Claims
(3) Enforceable Against Shareholders

2. Administrative Dissolution
3. 1udicial Dissolution
a. Shareholder Suit - FOWD
(1) Fraud
(2) Oppression
(3) Waste of Assets
(4) Deadlock
b. Creditor Suit
c. Receivership or Custodianship
4. Statute of Limitations for Claims after Dissolution

XI. PROFESSIONAL SERVICE CORPORATIONS
A. In General
B. Requirements
1. Only Licensed Professionals
2. Professionals Disqualified to Practice
C. Prohibited Activities
1. Only Professional Services
2. Idle Funds Exception
D. Trade Name
1. Professional Ethics Control
2. Deceased Partner`s Name
3. Corporate Designation Requirement
E. Death of Shareholder
1. Requirement to Purchase
2. Price Determination
F. Shareholder Personal Liability Shield
1. Full Tort Liability
2. Dischargeable Contract Damages


CHAPTER 1
BUSINESS ENTITIES - LIMITED LIABILITY COMPANY
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I. LIMITED LIABILITY COMPANIES (LLC)
A. Formation, Tradename, and Registered Agent
1. Required
2. Office and Registered Agent
B. LLC Agreement
C. Management Authority
1. Managing Member
2. Third Party Notice
3. All Members Manage
D. Ownership Issues
1. Number of Members
2. Contributions
3. Distribution Allocations
4. Member`s Rights
5. Ownership Transfer
E. Member Transactions
F. Liability of Members
1. Member to Entity and Other Members
2. Contract Liability to Third Parties
3. Tort Liability to Third Parties
4. Professional LLCs
5. Pierce LLC Entity Veil
G. Dissociation
1. Events of Dissociation
2. Consent
3. Distributions to Dissociating Member
H. Dissolution, Windup, and Cancellation of the LLC Certificate of Formation
1. Dissolution
2. Windup and Distribution of LLC Assets

II. LIMITED LIABILITY PARTNERSHIPS (LLP)
A. Formation and Tradename
B. Contributions and Allocations
C. Professional Practices
D. Partners` Liability

III. ATTRIBUTES OF BUSINESS ENTITIES