In in Re 1545 Ocean Avenue, LCC, Where the Two

question 49

Multiple Choice

In In re 1545 Ocean Avenue, LCC, where the two managers of a real estate development limited liability company disagreed about the project and one of the managers, King, sued for work to stop and the company to be dissolved, the appeals court reversed the trial court's decision to grant King's requests because:

• A) there was not sufficient evidence that the LLC could not effectively operate under the operating agreement
• B) there was sufficient evidence that the LLC could not effectively operate under the operating agreement
• C) there was not sufficient evidence that the LLC could effectively operate under the operating agreement
• D) the operating agreement specified that one manager could not dissolve the LCC
• E) the operating agreement gave King only a 49% share of power, so he could not dissolve the company

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Definitions:

Promissory Estoppel

A legal principle that prevents a party from withdrawing a promise made to another party if the latter has relied on that promise to their detriment.

Stock Option

A financial instrument granting the holder the right, but not the obligation, to buy or sell a stock at an agreed-upon price within a certain period.

Detrimental Reliance

A legal principle where a party suffers harm by relying on a misleading statement or promise of another.

Bargained-for Exchange

A fundamental principle of contract law that involves a mutual exchange of value or promises between parties.