Unincorporated Business Entities

Amitai Aviram

Course Outline and Reading Assignments

 

·                    I may modify this outline and the assigned reading throughout the semester. Please make sure to check my website (http://home.law.uiuc.edu/~aviram) each weekend to confirm the assigned reading for the following week.  If I must make more immediate changes, I will notify of them in class.

·                    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.

 

I.                  Facilitating Business through Business Entities

 

  1. How NOT to set up a business entity
    • Preface; Grant

 

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

·        Costello

 

  1. Economics of the Firm
    • Tampa Electric; Note on Economic Theories of the Firm

 

II.               Sole Proprietorship

 

1. 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

 

2. 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

 

3. Liability

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

 

Simulation I: Sole Proprietorships

 

III.           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

 

Simulation II – Partnerships

 

IV.            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

 

Simulation III – LLCs

 

V.               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

 

Simulation IV – Business Trusts

 

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