y Carl Davidson and his wife, Marilyn Rowe, decided to submit a bid to create a decorative concrete structure that incorporated artistic metalwork. They contacted Shana Lafayette, a local sculptor who specialized in large-scale metal creations, to help them design the bridge. The city selected their bridge design and awarded them the contract for a commission of $184,000. Davidson Masonry and Lafayette then entered into an agreement to work together on the bridge project. Davidson Masonry agreed to install and pay for concrete and structural work, and Lafayette agreed to install the metalwork at her expense. They agreed that overall profits would be split, with 25 percent going to Laf
The city of Papagos, Arizona, had a deteriorating bridge in need of repair on a prominent public roadway. The city
posted notices seeking proposals for an artistic bridge design and reconstruction. Davidson Masonry, LLC, which was
owned and managed by Carl Davidson and his wife, Marilyn Rowe, decided to submit a bid to create a decorative concrete structure that incorporated artistic metalwork. They contacted Shana Lafayette, a local sculptor who specialized
in large-scale metal creations, to help them design the bridge. The city selected their bridge design and awarded them
the contract for a commission of $184,000.
Davidson Masonry and Lafayette then entered into an agreement to work together on the bridge project. Davidson
Masonry agreed to install and pay for concrete and structural work, and Lafayette agreed to install the metalwork at her
expense. They agreed that overall profits would be split, with 25 percent going to Lafayette and 75 percent going to
Davidson Masonry. Lafayette designed numerous metal sculptures of trout that were incorporated into colorful decorative
concrete forms designed by Rowe. Davidson performed the structural engineering. The group worked together successfully until the completion of the project. Using the information presented in the chapter, answer the following questions.
1. Would Davidson Masonry automatically be taxed as a
2. Is Davidson Masonry member managed or manager managed?
3. When Davidson Masonry and Lafayette entered into an agreement to work together, what kind of special business
form was created? Explain.
4. Suppose that during construction, Lafayette entered into an agreement to rent space in a warehouse that was close
to the bridge so that she could work on her sculptures near the site where they would eventually be installed. She
entered into the contract without the knowledge or consent of Davidson Masonry. In this situation, would a court
be likely to hold that Davidson Masonry was bound by the contract entered into by Lafayette? Why or why not?
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