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Dorothy Is a Nonmanager Member of a 15-Person Manager-Managed LLC

Question 52

Multiple Choice

Dorothy is a nonmanager member of a 15-person manager-managed LLC that is engaged in selling media spaces to advertising agencies.Dorothy secretly purchases some media spaces that are in high demand from a few clients without telling the others in the LLC,sells it to a few agencies,and gains huge profits for herself in the process.Which of the following is true of the given scenario?


A) All the members can be held liable for breaching their duty.
B) Dorothy is liable for breaching her duty of care to the LLC.
C) Dorothy is liable for breaching her duty of loyalty to the LLC.
D) Dorothy is not violating any duty to the LLC.

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