Asked by Francielle Viana on May 27, 2024
Verified
The operating agreement of a limited liability company and a state's LLC statute can be applied together to determine the outcome of a dispute between the firm's members.
Operating Agreement
A legal document outlining the governance and business operations of an LLC, agreed upon by its members.
LLC Statue
Probably intended to be "LLC Statute," which refers to the laws that govern the formation, operation, and dissolution of Limited Liability Companies.
Dispute Resolution
The process of resolving disagreements or conflicts between parties through negotiations, mediations, arbitrations, or legal proceedings.
- Understand the basic principles and legal underpinnings of different business organizations including limited liability companies (LLCs), corporations, partnerships, joint ventures, and syndicates.
Verified Answer
DA
Daniela AzpilcuetaMay 30, 2024
Final Answer :
True
Explanation :
The operating agreement of a limited liability company (LLC) outlines the governance and operational guidelines agreed upon by its members, while the state's LLC statute provides the legal framework and default rules for LLCs. In the event of a dispute, both the specific provisions of the operating agreement and the applicable state laws are considered to resolve the issue, with the operating agreement typically taking precedence unless it conflicts with mandatory state law provisions.
Learning Objectives
- Understand the basic principles and legal underpinnings of different business organizations including limited liability companies (LLCs), corporations, partnerships, joint ventures, and syndicates.