Distinguishing between LLPs, LLC and LLLP - Assignment Example

Liability of members case involves a limited company, formed by three people, and an employee of Heather. The company sends Heather to a computer show and while driving to the show to market the company’s products, she negligently causes an accident and injures a pedestrian, Singer. The singer has sued the company, its owners, and Heather for damages. The issue for determination is whether a limited liability company is liable for torts committed by its members or employees. A limited liability company is liable for any harm caused by its owners, employees, or agents, while in the course of duty, but is not liable for torts such as negligence to which tortfeasors are personally liable.

Heather is therefore liable to Singer (Cheeseman 662).EthicsMelony is one of the four members of iNet.com, a limited liability company. The members develop a product and agree to purchase a plant for production in six months. Melony however sells the idea to a competitor and this leads to a $ 100 million loss to the company. The issue for determination is whether Melony is liable to iNet.com for the losses and morality in Melony’s act. Rules of Limited Liability Company establish a duty of care among all members of a member-managed company.

The case identifies member management and Melony is liable to the company for her actions in the loss. Melony’s action is also unethical because it leads to financial loss for her co-members (Cheeseman 664- 665).