Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Cralle Comer and Stephen Chapman form twomanager-managed limited liability companies,Garrison-Ashburn LC and Garrison-Woods LC.Comer and Chapman each own a 50 percent membership interest in each

Cralle Comer and Stephen Chapman form twomanager-managed limited liability companies,Garrison-Ashburn LC and Garrison-Woods LC.Comer and Chapman each own a 50 percent membership interest in each LLC. Comer is the operatingmanager. Chapman files a voluntary petition in bankruptcy under Chapter 11 of the U.S. Bankruptcy Code.In the course of the bankruptcy proceeding, Comerwishes to sell a parcel of land owned by GarrisonWoods. Chapman argues that Garrison-Woods cannotsell the land without his consent on the grounds thatthe LLC's operating agreement requires both members to execute all deeds and sale contracts. Chapmanrefuses to sign the contract of sale or the deed. Comerargues that as operating manager, he is fully authorized to execute the contract. Do you think the courtwill find in favor of Comer or Chapman?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting

Authors: Ray Garrison, Theresa Libby, Alan Webb

9th canadian edition

1259269477, 978-1259269479, 978-1259024900

Students also viewed these Law questions