Elements II Flashcards

1
Q

Partnership Definition

A
  • association of two or more persons
  • to carry on as co-owners
  • a for profit business

Key factors: profit sharing, loss sharing, right to participate in control

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2
Q

Agency Formation

A
  • consent from one person to another
  • that the other shall act on his behalf and subjec to his control
  • consent by agent to act

No writing required, no consideration required
Principal need contractual capacity, agent needs minimal capacity

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3
Q

Agent’s Duties to Principal

A

fiduciary duties

Duty of Care - act with reasonable care
Duty of Loyalty - undivided loyalty to principal - treating their interests first (no self dealing, competing); also includes duty obedience

Principal’s Remedies: contractual remedies, damages, or disgorgement of profits

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4
Q

Principal’s Duties to Agent

A

**not fiduciary*

Obligation to Indemnify
Compensation, Cooperation

Agent’s Remedies: contractual remedies, possessor lien

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5
Q

Actual Authority

A

authority created by words or conduct of the principal that would lead a reasonable person in the agent’s situation to believe they had authority

Effect: binds principal

Termination: reasonable time, change in circumstances, specific time or event, death, unilateral act, breach of fid. duty

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6
Q

Apparent Authority

A

authority created by principal’s word or conduct that would lead reasonable person in third party’s position to believe that the agent had authority to act

Effect: binds principal

Termination: TP does not have reasonable belief (?)

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7
Q

Effect of Principal’s Ratification

A

Principal bound if P knew all material facts and accepts the whole transaction

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8
Q

Principal’s Liability for Intentional Torts

A

P generally not liable unless:

  • authority or ratification
  • motivation of tort was to serve employer OR
  • torts flow from nature of job
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9
Q

General Partnership Management

A

Voting

  • generally 1 person 1 vote
  • majority for ordinary decisions
  • unanimous for extraordinary

Financial Rights
-profits shared equally by default, losses follow profits

Liability of Partnership
liable for K if GP actual or apparent authority
liable for tort if ordinary COB or actual or apparent authority

Liability of General Partners

  • each GP is jointly and severally liable for partnership obligations (tort or K)
  • personally liable for debts if partnership resources first exhausted
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10
Q

General Partner Duties

A

*owed to partners and to each other

duty of care - not engaged in grossly negligent or reckless conduct

duty of loyalty - no self dealing, not to compete or take on adverse interests to partnership

duty of disclosure - entitled to disclosures, no demand required

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11
Q

General Partnership - Partnership Property; Ownership Rights

A

Partnership Rights:

Presumed to be partnership property (GP has no rights) if:

  • purchased with partnership funds,
  • in partnership name

Ownership Rights:

  • management rights - cannot transfer
  • financial rights - freely transferable
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12
Q

General Partnership Dissociation, Dissolution

A

disassociation - withdrawal by partner. if wrongful (before end of term), liable for damages

  • express will/notice of withdrawal
  • expulsion
  • death
  • agreed upon event
  • bankruptcy

Effect: dissolution of partnership OR partnership continues and disassociated member bought out; AND disassociated partner still liable for two year unless public statement

*dissolution required if partner dissociates by express will in at will partnership

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13
Q

Distribution of Partnership Assets at Dissolution

A
  • creditors (internal and external)
  • reimburse partners for capital contributions
  • split losses and profits if present

until officially dissolved, apparent authority exists, partnership can be bound unless public statement of dissolution

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14
Q

Limited Partnership

A
  • association of two or more persons
  • to carry on as co-owners
  • a business for profit
  • with at least one general partner
  • and one limited partner

LPs owe no fiduciary duties of loyalty, care, etc.

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15
Q

Formation, LP

A
  • filing with SOS (naming registered agent for SOP, name and address for GP
  • proper name - must contain LP
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16
Q

Management, Financial Rights, LP

A
  • GP-managed (majority vote for ordinary decisions, unanimity for extraordinary decisions)
  • Financial rights based on contribution
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17
Q

FUNKY CARD

A

General partnership, partners not liable for debts of business

  • filing requirement
  • partners not personally liable
18
Q

Limited Liability Company

A

unincorporated business organization, hybird between corporation and partnership,

  • file paper work + operating agreement with SOS
  • member managed or manager managed

Member/Manager Duties: DOC + DOL to entity and other members/managers;

Benefits: no double taxing

19
Q

Separate Property

A

Separate

Effect: not subject to equitable distribution - goes to “owning” spouse

  • RP and PP acquired before marriage
  • property by gift, devise, descent
  • property acquired in exchange for separate property
  • income and appreciation of separate property
  • assets in retirement
  • property acquired after legal separation
  • personal pain and suffering damage awards

*EXCEPT where intertwined inextricably, intent indicated otherwise, or improvement by marital efforts

20
Q

Marital Property

A

Effect: subject to distribution (equitable division OR community approach - 1/2 marital property to each spouse - minority rule)

  • property acquired during marriage
  • earnings and property thereof (even if by sole earner)
  • pension (even if no contributions)
  • unvested employment benefits
21
Q

Factors for Equitable Distribution

A
  • duration of marriage
  • custody of minor children
  • each party’s contribution
  • age, education, earning capacity
  • needs
  • health
  • contribution as homemaker
  • economic fault (gambling, etc)

distribution is final!!!!
*title is not dispositive, this is not an “equal” distribution

22
Q

Requirements for Valid Marriage

A
  • Consent
  • Ceremony (third party authorized officiant)
  • No legal impediments (no close relationship, no bigamy)
  • License

*absence of license does not invalidate marriage

23
Q

Prenups

A

Formalities

  • in writing and signed
  • voluntary (not under fraud and duress)
  • full disclosure req. if unconscionable
24
Q

Common Law Marriage

A
  • consent to wed
  • actual co-habitation
  • publicly holding out as spouse
25
Annulment
- ending an invalid marriage (where one of requirements not met) Effect: property returns to premarital status, child support awarded, marriage set aside Void marriages if bigamy or close relationship --> no legal action required, TP can attack, can be valid after impediment removed Voidable if duress, lack of capacity, no consent, or fraud as to essential elements of marriage --> valid until declared null, only attackable by parties can be remedied when Voidable marriages
26
Divorce, Jurisdiction
- proper where one of the spouses is domiciled (present + intent to remain) - to effect property, court must have personal jurisdiction!!
27
Alimony/Spousal Support
-permanent periodic support specific amount until death/remarriage can be increased, decreased with change in circumstances - lump sum specified amount or at one time no modification (treated as K), binding on payor's estate -rehabilitative support specific period x amount per month to finish college can be awarded in conjunction with other alimony - reimbursement support spouse can be reimubrsed to extent they supported/contributed to other spouse and did not get benefits specified pd, lump sum, or installments no modification (treated as K), binding on estate
28
Alimony, Key Considerations
- needs of claimant spouse, ability of payor spouse to pay
29
Separation agreement
- consideration required - can waive alimony or property division - can detail custody/child support (but ct not bound)
30
Child Support, Key Considerations
- parents owe a duty --> balance ability to pay and needs of child TEST to modify: substantial and continuing change in circumstances affecting needs of child or ability to pay
31
Child Support Jurisdiction
original jurisdiction -where petition filed under UIFSA or another state if objection to first state within answer time AND second state is home state jurisdiction to enforce - where award issued or another state by direct enforcement - can be enforced through civil or criminal contempt action, taking tax refund, revoking license jurisdiction to modify - continuing exclusive jurisdiction -where original award filed UNLESS neither party resides there or parties consent otherwise
32
Child Custody Jurisdiction
original jurisdiction - UCCJEA - home state = where child lived with parent for at least 6 months OR proper where child 's home state was but child absent and parent continues to live there -issuing state has continuing exclusive jd unless no parent/child resides in state or child no longer has significant connection Temporary Emergency jd okay if --> child physically present, child abandoned, poor necessary to protect child
33
Best interest of the child
- child's wishes - (under 8 not determinative, over 12 great weight) - parent's wishes - child's adjustment (schooling, home life, etc) - interrelationship with siblings, parents, others - mental/physical health of all parties
34
Types of Custody (legal and physical)
Joint - encouraged, only awarded if parties agree Sole - strong evidence - other spouse likely to have visitation unless not in the BIOC Custody to Non-parent -rare; non parent has the burden of showing unfitness of parent or harm to child Visitation -absolute denial is rare for parents, special weights given to parents because of constitutional rights
35
Custody Modifications
Require substantial and material changes in circumstances affecting the needs of the child Relocation - notice and opp to be heard Ct will grant if in BIOB and not intended to thwart relationship of other parent
36
Termination of Parental Rights
voluntary termination by adoption involuntary termination where taken because child's well-being endangered
37
PMSI - purchase money security interest
two types: financier financed, seller financed seller financed - credit sale (buyer pays less than full price) AND - creditor retains interest in the collateral financier financed - loan to purchase collateral - loan actually used to purchase collateral - creditor takes security interest in collateral
38
Attachment
defined - creation of security interest, creates creditor's rights as to debtor (1) security agreement (usually a writing signed by the debtor that describes collateral and shows intent to create a security interest) (2) both parties give value (3) debtor has right to collateral being offered up
39
Perfection
defined - creates creditor's interest as to third parties/other debtors Attachment PLUS (1) PMSI in consumer goods - automatically perfected (2) possession - DNA to intangible goods, only way to perfect cash (3) control - secured party becoming co-owner - automatic control by bank maintaining account - control agreement (4) notation of lien on certificate of title -only way to perfect title for trucks/car UNLESS held for inventory then 1 filing OR (5) UCC-1 financing statement
40
Financial Statement
Requirements: (1) debtor's - name of unexpired driver's license in jd. if mistake valid as long as not seriously misleading (2) description reasonably identifying collateral - supergeneric, A9 categories, or normal vocab (3) secured parties' name (4) financing statement (??????) (5) authorized by debtor - does not have to be signed, ipso facto auth if debtor signed security agreement - valid for five years, filed with Sec of State Renewed: by filing UCC-3 continuation statement in six months, renews for 5 years
41
Secured transacrtion
transaction intended to create security interest in PP or property Created through credit transaction + agreement that creates lien
42
security interest
contingent interest in collateral that creditor has over property security agreement =K that creates the security interest