Unincorporated Business Entities

Amitai Aviram

Course Outline and Reading Assignments

 

·         PowerPoint presentations are available by clicking on the hyperlinked class topic.  These presentations are made available solely as study-aids for the use of students in the course, and are not to be modified, sold or transferred to others.

 

1.     Facilitating Business through Business Entities

 

  1. How NOT to set up a business entity

 

  1. The Diverging Incentives of Debt- and Equity-holders

·         Costello

 

  1. Economics of the Firm

 

2.     Sole Proprietorship

 

a. Formation/Termination

·         (a) Fictitious Names: N.Y. General Business Law, § 130, G.L.&R. Realty Corp.

·         (b) Creating an Agency Relationship: Restatement (Third) on Agency (“Restatement”) § 1.01-1.04, 2.01, 2.03, 2.05; Hanson

·         (c) Termination: Restatement § 3.06-3.13

·         (d) Agency Risks in Financing the Business: Cargill

·         (e) Duties: Restatement § 8.01-8.11, 8.14-8.15; Drumm

 

b. Operation

·         (a) General Principles of Contracting With an Agent: Restatement § 6.01-6.05, 6.10-6.11

·         (b) Agent’s Actual authority: Restatement § 2.02, 3.01; Willey; IOS

·         (c) Agent’s Apparent Authority: Restatement § 3.03; Quint

·         (d) Undisclosed Principal (Inherent Authority): Restatement § 2.06

·         (e) Ratification: Restatement § 4.01-4.08

 

c. Liability

·          Restatement § 2.04, 7.01-7.08; Parker; Meltzer

 

3.     Limited Partnership & Limited Liability Partnership

 

  1. Limited Partnership: History / Liability

·         Uniform Limited Partnership Act (2001) (“ULPA”) § 301, 113, 303, 305-306; Rathke; Zeiger; Briargate

 

  1. Limited Partnership: Formation / Operation

·         ULPA § 104, 110, 201-204, 208, 210; Matek

·         ULPA § 118, 302, 304, 401-404, 406, 408; Gotham Partners

 

  1. Limited Liability Partnership

·         Uniform Partnership Act (1997) (“RUPA”) § 306(c), 807(f), 1001-1003; NYT Article; Dow; Megadyne

 

4.     Limited Liability Company

 

  1. Formation

·         Revised Uniform Limited Liability Company Act (2006) (“RULLCA”) § 102, 104, 110-112, 201, 401, 407

·         Uniform Limited Liability Company Act (1996) (“ULLCA”) § 103, 203, 404; Elf

 

  1. Termination

·         RULLCA § 601-603, 701-704, 708; Haley

 

  1. Operation

·         RULLCA § 110, 301-302, 407, 409-410, 502

·         ULLCA § 103, 301, 404, 409; Castiel

 

  1. Liability

·         RULLCA § 104(a), 304, 403, 405-406, 503; Handy; Flahive

 

5.     The Business Trust

 

  1. Formation / Termination

·         Delaware Statutory Trust Act (“DSTA”) § 3801, 3802, 3807(A), 3808, 3810

·         Gabelhart; Eastern Airlines

 

  1. Operation

·         DSTA § 3804-3806, 3809

·         Richardson; Pacific Realty Trust; Terrydale Liquidating Trust

 

  1. Liability

·         DSTA § 3803

·         Calvin Klein Trademark Trust; Babitt

 

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