Carlos Is a Member of an LLC Along with Three

question 56

Multiple Choice

Carlos is a member of an LLC along with three others.After one year,despite their best efforts,the business closes and the bank which extended them a loan sues for repayment.The bank may:

• A) sue Carlos for only 25% their loss under rules pertaining to LLCs.
• B) sue Carlos for the entire amount because Carlos is jointly and severally liable for the loss.
• C) sue Carlos only if he is a managing member.
• D) sue the LLC but may not sue Carlos

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Definitions:

Breach of Contract

occurs when one party in a contractual agreement fails to fulfill their obligations as outlined in the contract, allowing the other party to seek legal remedies.

Nuisance

An act, condition, or thing causing annoyance, inconvenience, or damage to individuals or the community, not necessarily illegal but may be regulated or restrained.

Qualified Privilege

A legal immunity granted under certain conditions, protecting individuals from liability for statements made without malice.

Innuendo

An implied statement that is detrimental to another.