Blushing Brides, LLC, a publisher of wedding-planning magazines in Columbus, Ohio, opened an account with Gray Printing
Question:
1. Under what circumstances is a member of an LLC liable for the firm’s debts? In this case, is Zacks personally liable under the credit agreement for the unpaid amount on Blushing Brides’ account? Did Zacks’s promissory note affect the parties’ liability on the account? Explain.
2. Should a member of an LLC assume an ethical responsibility to meet the obligations of the firm? Discuss.
3. Gray shipped only 10,000 copies of the spring/summer 2002 issue of Blushing Brides’ magazine, waiting for the publisher to identify a destination for the other 5,000 copies. The magazine had a retail price of $4.50 per copy. Did Gray have a legal or ethical duty to “mitigate the damages” by attempting to sell or otherwise distribute these copies itself? Why or why not?
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Related Book For
Business Law Today The Essentials
ISBN: 978-0324786156
9th Edition
Authors: Roger LeRoy Miller, Gaylord A. Jentz
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