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71. Clark and Kent are attorneys and have formed an LLP. They take on various debts and obligations to operatethe firm including an installment contract to purchase computers and copy machines for the office. The LLP lawin their state provides for liability protection for innocent partners should another partner cause liability through a tortious act. Clark is sued by Lois for civil assault and battery after Clark improperly touches her during an office meeting to discuss her divorce in which Clark is representing her. The amount of her judgment exceeds the assets of the LLP and the LLP dissolves. What is Clark and Kent's liability for the judgment and other firm debts? 72. Name some of the usual terms and conditions that a typical franchise agreement would address. 73. Stop Now LLP manufactures brake linings and sells their product to repair and maintenance shops for use asreplacements for worn brakes. When Stop Now approaches Coastal Garage, they offer a very good price for their products. Coastal is a nationwide company and the order would be very large. The management at Coastal is very interested in dealing with Stop Now but is concerned with the LLP's limited liability protections for StopNow's partners. What could Coastal due to protect themselves from the LLP's limited liability protections? 74. Angela has just graduated and is ready to go on with her life. She loves good food and loves to party so she decides to combine her two loves and open a restaurant/bar. Although she has a lump sum of money she doesn't have management experience or management knowledge since she was a French major in school. When she approaches landlords to find a suitable place for her business they see that she is likely to not be successful on her own so they won't deal with her. What might she do to best accomplish her goal of restaurant/bar ownership?
75. What was the effect of the creation of the LLC on those seeking to open a new business? 76. Explain the similarities and differences, if any, with regard to tax treatment of LLCs and LLPs. 77. What is meant by the term "capital call"? Under what circumstances might it occur and how does it affect partners? 78. John, Paul Mark and Luke have been operating an LLC and according to the operating agreement, the term of the LLC is set to expire in the near future. What options do the four partners have? 79. Explain the following statement from the text. "A franchise should be thought of as a method of conducting business rather than a business entity".
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Corporation, Types of business entity, Limited Liability Company