Chapter 17, Problem 8BCP

(a)

Summary Introduction

Case summary:Publisher B, an LLC, situated in Ohio, opened a bank account with printing company G. Person L, a member-manager of B, signed a credit agreement with G that identified him as a purchaser and the agreement stated that the payment would be required within 30 days. In spite of the agreement, B took 6 months for the settlement of the payment. G agreed, after refusal, to take new orders only after the assurance of payment. L signed a promissory note payable to G along with a 6$\%$ interest payment per year. G printed new orders, but in the end was paid a lesser amount than what was agreed. Company G filed a suit in the state court of Ohio against company B and person L to collect the balance.

To find:The circumstances in which a member of an LLC is liable for the debt of the firm.

Summary Introduction

Case summary: Publisher B, an LLC, situated in Ohio, opened a bank account with printing company G. Person L, a member-manager of B, signed a credit agreement with G that identified him as a purchaser and the agreement stated that the payment would be required within 30 days. In spite of the agreement, B took 6 months for the settlement of the payment. G agreed, after refusal, to take new orders only after the assurance of payment. L signed a promissory note payable to G along with a 6$\%$ interest payment per year. G printed new orders, but in the end was paid a lesser amount than what was agreed. Company G filed a suit in the state court of Ohio against company B and person L to collect the balance.

To find:The liability of the person L for the unpaid amount of the publisher B under the credit agreement.

Summary Introduction

Case summary:Publisher B, an LLC, situated in Ohio, opened a bank account with a printing company G. Person L, a member-manager of B, signed a credit agreement with G that identified him as a purchaser, and the agreement stated that the payment would be required within 30 days. In spite of the agreement, B took 6 months for the settlement of the payment. G agreed, after refusal, to take new orders only after the assurance of payment. L signed a promissory note payable to G along with a 6$\%$ interest payment per year. G printed new orders, but in the end was paid a lesser amount than what was agreed. Company G filed a suit in the state court of Ohio against company B and person L to collect the balance.

To find:The effect of the promissory note of person L on the liability of parties on the account.

(b)

Summary Introduction

Case summary:Publisher B, an LLC, situated in Ohio, opened a bank account with a printing company G. Person L, a member-manager of B, signed a credit agreement with G that identified him as a purchaser and the agreement stated that the payment would be required within 30 days. In spite of the agreement, B took 6 months for the settlement of the payment. G agreed, after refusal, to take new orders only after the assurance of payment. L signed a promissory note payable to G along with a 6$\%$ interest payment per year. G printed new orders, but in the end was paid a lesser amount than what was agreed. Company G filed a suit in the state court of Ohio against company B and person L to collect the balance.

To f ind: The ethical responsibility of the members of an LLC to meet the obligations of the firm.

(c)

Summary Introduction

Case s ummary: Publisher B, an LLC, situated in Ohio, opened a bank account with a printing company G. The person L, a member-manager of B, signed a credit agreement with G that identified him as a purchaser and the agreement stated that the payment would be required within 30 days. In spite of the agreement, B took 6 months for the settlement of the payment. G agreed, after refusal, to take new orders only after the assurance of payment. L signed a promissory note payable to G along with a 6$\%$ interest payment per year. G printed new orders, but in the end was paid a lesser amount than what was agreed. Company G filed a suit in the state court of Ohio against company B and person L to collect the balance.

To f ind: The legal duty of person L to mitigate the damage by the sale or distribution of the copies.