Karl Horvath, Hein Rüsen, and Carl Thomas formed a partnership, HRT Enterprises, to buy a manufacturing plant. Rüsen and Thomas leased the plant to their own company, Merkur Steel. Merkur then sublet the premises to other companies owned by Rüsen and Thomas. The rent that these companies paid to Merkur was higher than the rent that Merkur paid to HRT. Rüsen and Thomas did not tell Horvath about the subleases. Did Rüsen and Thomas breach their fiduciary duties to HRT and Horvath? Discuss.
Answer to relevant QuestionsPatricia Garcia and Bernardo Lucero were in a romantic relationship. While they were seeing each other, Garcia and Lucero acquired an electronics service center, paying $ 30,000 apiece. Two years later, they purchased an ...The Legal Environment DimensionWould dissolution be appropriate if the parties had formed a partnership rather than an LLC? Explain your answer. 1. What is the imputation doctrine? What public policy reasons support imputing the fraud of a corporate officer to the corporation? 2. What circumstances in this case suggest that MB should be held liable for Bloom’s ...Although a limited liability company may be the best organizational form for most businesses, a significant number of firms may be better off as a corporation or some other form of organization. (See page 759.)a) The first ...Peppertree, Inc., hired Robert McClellan, a licensed contractor, to repair a condominium complex that was damaged in an earthquake. McClellan completes the work, but Peppertree fails to pay. McClellan is awarded $181,000 in ...
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