Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Leonard, an accountant, was negligent in filing the taxes of Big Corporation. In settlement of Big Corporation's claim against him, Leonard signed a promissory note

Leonard, an accountant, was negligent in filing the taxes of Big Corporation. In settlement of Big Corporation's claim against him, Leonard signed a promissory note for $10,400 on behalf of his accounting firm, an LLP. When the law firm did not pay, Anthony filed suit against Leonard personally for payment of the note. Is a member personally liable for the debt of an LLP that was caused by his own negligence?

Would you answer change if the facts were slightly different:

  • What if Leonard acted recklessly while working for the Limited Liability Company?
  • What if Leonard was negligent while working for a corporation or Limited Partnership?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored 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

Commentaries And Cases On The Law Of Business Organization

Authors: William T. Allen, Reinier Kraakman, Vikramaditya S. Khanna

6th Edition

1543815731, 978-1543815733

More Books

Students also viewed these Law questions