GRADED BUS 607 Week 1 Discussions

BUS 607 Week 1 Discussions LLC and Fiduciary Duty [CLOs: 1,5,7]. 1st Post Due by Day 3. Green Properties Group owns, manages, and develops real property. Jones Group, Inc. also develops real property. Green entered into agreements with Jones concerning a large tract of property in Georgia. The parties formed NewGroup, LLC, to develop various parcels of the tract for residential purposes. The operating agreement of NewGroup indicated that “no Member shall be accountable to the LLC or to any other Member with respect to any other business or activity even if the business activity competes with the LLC’s business.” Later, when Green contracted with other parties to develop parcels within the tract in competition with NewGroup, LLC, Jones sued, alleging breach of fiduciary duty. Please address the following: • Outline the fiduciary duties that the members of an LLC owe to each other. • Can the terms of the NewGroup, LLC operating agreement alter these fiduciary duties? Explain why or why not. • In whose favor should the court rule in the above scenario? Why? Use this week’s lecture as a basis for your post. Respond to at least two of your classmates’ posts. Personal Liability [CLOs: 1,5,7]. 1st Post Due by Day 3. Johnson Trucking, Inc., owned by Pat Johnson, charged its fuel purchases to an account at Juice Express. When Johnson Trucking, Inc. was not paid on several jobs, it was unable to pay amounts owed to Juice. Shortly thereafter, Johnson Trucking, Inc. ceased doing business and was dissolved. However, Pat continued to provide trucking services as a sole proprietor. Juice sued Pat Johnson for the unpaid amount – about $35,000. Pat argued that he was not personally liable for corporate debt. What are the factors the court will consider in deciding whether or not to pierce the corporate veil? Should the court pierce the corporate veil? Why or why not? Use this week’s lecture as a basis for your post. Respond to at least two of your classmates’ posts