Burt has gone to a commercial bank to negotiate a loan for the LLC in which he is a member.He tells you that he is authorized to act on behalf of and to bind the company.What is the best way for you to verify whether Burt does in fact have the authority he claims?

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The articles of organization will contain information about the authorization of members to act on behalf of the LLC. Checking this document is the most reliable way to verify whether Burt has the authority he claims. A written statement signed by Burt would only provide evidence of his own claim, and calling another member for confirmation may not be sufficient to confirm his authority. The statement that all LLC members have the right to bind the company as do general partners is incorrect, as the extent of a member's authority will depend on the specific provisions of the LLC's operating agreement and the laws of the state in which it is organized.

Burt Has Gone to a Commercial Bank to Negotiate a Loan