Question
Lavone Helmsley, who lives in New York, formed a limited liability company (LLC) which bought a cattle ranch in Montana. She hired Joe Cowboy to
Lavone Helmsley, who lives in New York, formed a limited liability company (LLC) which bought a cattle ranch in Montana. She hired Joe Cowboy to manage the LLC and the ranch operations. Joe was instructed not to sell any cattle for six months. Unknown to Lavone, ranch managers in the Montana area where the cattle ranch was located have the customary power to sell cattle. One month later Joe sold some cattle that were not in his possession to Roger Easyone, who knew that Joe was the manager of the LLC ranch, but did not know of the local custom. Both Lavone and the LLC now want to disaffirm the sale.
(a) Can Lavone and/or the LLC disaffirm the sale? Discuss and fully explain any and all legal ramifications
(b) Would your answer to the above change if Roger knew that Joe was Lavones agent but did not know that Joe was the manager? Discuss and fully explain any and all legal ramifications.
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