Which of the following is true of the payment of distributional interest to a disassociating member?

Question

Quizplus · Accepted Answer

When a member disassociates wrongfully, the LLC can seek damages caused by the wrongful disassociation. Any damages caused to the LLC should be offset against the purchase price of the disassociating member's distributional interest. Therefore, option D is correct. Option A is incorrect because an at-will LLC must purchase a disassociated member's distributional interest regardless of whether there is wrongful disassociation or not. Option B is incorrect because the price and terms of the distributional interest are to be agreed upon in good faith by the parties. Option C is incorrect because the Uniform LLC Act does not provide for a specific time frame for the purchase of disassociated member's distributional interest.

Which of the Following Is True of the Payment of Distributional