$14$B$.$

HYPOTHETICAL

$1.$ Phillips is the managing member of Active Wear, LLC$.$

$2.$ He signs a five$-$year lease agreement with Landlord on behalf of Active Wear, LLC$.$

$3.$ One year into the lease, Active Wear, LLC breaches the lease by moving out because the business failed.

$4.$ Landlord sues Active Wear, LLC for breaching the lease.

$5.$ Landlord seeks all the unpaid rent as damages.

QUESTION

Is it possible for Phillips to be held personally liable to Landlord?

Group of answer choices

Yes, because Active Wear LLC was manager$-$managed LLC$.$

Yes, because Active Wear LLC was member$-$managed LLC$.$

No$,$ because an LLC is a business entity that insulates its members from personal liability.

No$,$ because managing$-$members of LLCs are insulated from personal liability.