v.

Business Associations
Fall 2015
Alan Miller

e-mail: alan.miller@law.northwestern.edu
office: Rubloff 524
office hours: Tuesdays 10-11 or by appointment

Class Meetings: Mondays, Tuesdays, and Wednesdays in Levy Mayer 317

Required Text: Klein, Ramseyer, and Bainbridge, Business Associations (9th ed. 2015).
The statutory supplement is recommended, but not required. Alternatively, you can find the
relevant sections of the restatement, model codes, and statutes online or via Lexis/Westlaw.
Additional readings will be placed on Canvas.

Students are should come to class prepared with readings one class in advance.

The syllabus is subject to (and will) change. Updates will be announced in class and uploaded.

Your grade will based on an open book exam (80%) and class participation (20%).

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8/31. Class 1. Introduction.

9/1. Class 2. The Principal-Agent Relationship.




Reading: Klein, Ramseyer, and Bainbridge, pp. 1–12.

Restatement (Second) of Agency §§ 1–3.
Restatement (Third) of Agency §§ 1.01–1.04, 7.07.



Cases: Gordon v. Doty

Jenson v. Cargill

9/2. Class 3. Liability of the Principal in Contract.




Reading: Klein, Ramseyer, and Bainbridge, pp. 12–14.

Restatement (Second) of Agency §§ 4–8B, 13, 26–27, 33–35, 82–83, 

144–145, 150–161, 186, 194–195A.
Restatement (Third) of Agency §§ 2.01–2.07, 3.01–3.05, 4.01–4.08, 

6.01–6.03.



Cases: Jenson v. Cargill (continued)

Mill Street Church of Christ v. Hogan

9/7. No Class.

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9/8. Class 4. Liability of the Principal in Contract.




Reading: Klein, Ramseyer, and Bainbridge, pp. 15–22.




Cases: Three-Seventy Leasing Corporation v. Ampex Corporation

Watteau v. Fenwick

9/9. Class 5. Liability of the Principal in Contract.




Reading: Klein, Ramseyer, and Bainbridge, pp. 22–31.




Cases: Botticellow v. Stefanovicz

Hoddeson v. Koos Bros.
Atlantic Salmon A/S v. Currran

9/14. No Class.

9/15. No Class.

9/16. Class 6. Liability of the Principal in Tort




Reading: Klein, Ramseyer, and Bainbridge, pp. 31–47, 55–59.

Restatement (Second) of Agency §§ 219–220.
Restatement (Third) of Agency §§ 7.01, 7.03–7.04, 7.08.



Cases: Humble Oil & Refining Co. v. Martin

Hoover v. Sun Oil Company
Arguello v. Conoco
Murphy v. Holiday Inns, Inc.
Miller v. McDonald’s Corp.

9/21. Class 7. Liability of the Principal in Tort




Reading: Klein, Ramseyer, and Bainbridge, pp. 47–55, 59–63.

Restatement (Second) of Agency §§ 228–231.
Restatement (Third) of Agency §§ 7.07.



Cases: Ira S. Bushey & Sons, Inc. v. United States

Manning v. Grimsley
Majestic Realty Associates, Inc., v. Toti Contracting Co.

9/22. Class 8. Agents’ Fiduciary Duties




Reading: Klein, Ramseyer, and Bainbridge, pp. 63–72.

Restatement (Second) of Agency §§ 376–404.
Restatement (Third) of Agency §§ 8.01–8.15.



Cases: Reading v. Regem

Reach v. J.V. Intermediate, Ltd.
Town & Country House & Home Service, Inc., v. Newberry.

9/23. No Class.

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9/28. Class 9. Existence of a Partnership




Reading: Klein, Ramseyer, and Bainbridge, pp. 73–89.

Uniform Partnership Act (1914) §§ 6–7, 9, 16, 18.
Revised Uniform Partnership Act (1997) §§ 201–202, 301, 308, 401.



Cases: Fenwick v. Unemployment Compensation Commission

Martin v. Peyton
Southex Exhibitions, Inc. v. Rhode Island Builders Association, Inc.
Young v. Jones

9/29. Class 10. Fiduciary Duties of Partners




Reading: Klein, Ramseyer, and Bainbridge, pp. 89–113.

Uniform Partnership Act (1914) §§ 20, 21.
Revised Uniform Partnership Act (1997) §§ 103, 303, 403–404.



Cases: Meinhard v. Salmon

Sandvick v. LaCrosse
Meehan v. Shaughnessy
Lawlis v. Kightlinger & Gray

9/30. Class 11. Partnership




Reading: Klein, Ramseyer, and Bainbridge, pp. 113–125.

Uniform Partnership Act (1914) §§ 18, 27, 36.
Revised Uniform Partnership Act (1997) §§ 401, 501–503, 703.



Cases: Putnam v. Shoaf

Summers v. Dooley
Day v. Sidley & Austin

10/5. Class 12. Partnership




Reading: Klein, Ramseyer, and Bainbridge, pp. 125–156.

Uniform Partnership Act (1914) §§ 29–40.
Revised Uniform Partnership Act (1997) §§ 601–804, 807.



Cases: Owen v. Cohen

Collins v. Lewis
Giles v. Giles Land Company

10/6. Class 13. Partnership




Reading: Klein, Ramseyer, and Bainbridge, pp. 125–156.

Uniform Partnership Act (1914) §§ 29–40.
Revised Uniform Partnership Act (1997) §§ 601–804, 807.



Cases: Prentiss v. Shelfful

Pav-Saver Corporation v. Vasso Corporation
Kovacik v. Reed
G & S Investments v. Belman

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***Make up class at noon in 317 Levy-Mayer***

10/6. Class 14. Other Organizational Forms



Reading: Klein, Ramseyer, and Bainbridge, pp. 157–167.

Handout

10/7. Class 15. The Corporate Form




Reading: Klein, Ramseyer, and Bainbridge, pp. 169–179.

Delaware General Corporate Law §§ 101–102, 106–109, 121–122, 124, 131,
141–142, 144.



Cases: Boilermakers Local 154 Retirement Fund v. Chevron Corporation

10/12. Class 16. Derivative Suits




Reading: Klein, Ramseyer, and Bainbridge, pp. 199–221.




Cases: Cohen v. Beneficial Industrial Loan Corp.

Eisenberg v. Flying Tiger Line, Inc.

10/13. Class 17. Derivative Suits




Reading: Klein, Ramseyer, and Bainbridge, pp. 199–221.




Cases: Grimes v. Donald

Marx v. Akers

***Make up class at noon in 317 Levy-Mayer***

10/13. Class 18. Derivative Suits and Charitable Giving



Reading: Klein, Ramseyer, and Bainbridge, pp. 221–240.




Cases: Auerbach v. Bennett

Zapata Corp. v. Maldonado
In re Oracle Corp. Derivative Litigation
A.P. Smith Mfg. Co. v. Barlow

10/14. Class 19. Corporate Purpose




Reading: Klein, Ramseyer, and Bainbridge, pp. 242–258.

Delaware General Corporate Law § 122(9).



Cases: Dodge v. Ford Motor Co.

Shlensky v. Wrigley

10/19. Class 20. Piercing the Corporate Veil in Tort




Reading: Klein, Ramseyer, and Bainbridge, pp. 179–184.




Cases: Walkovsky v. Carlton.

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10/20. Class 21. Piercing the Corporate Veil in Contract




Reading: Klein, Ramseyer, and Bainbridge, pp. 184–199.




Cases: Sea-Land Services, Inc. v. Pepper Source

In re Silicone Gel Breast Implants Products Liability Litigation
Frigidare Sales Corporation v. Union Properties, Inc.

***Make up class at noon in 317 Levy-Mayer***

10/20. Class 22. Duty of Care



Reading: Klein, Ramseyer, and Bainbridge, pp. 299–322.

Delaware General Corporate Law §§ 102(b)(7), 145.



Cases: Kamin v. American Express Company

Smith v. Van Gorkom
Francis v. United Jersey Bank

10/21. Class 23. Duty of Loyalty




Reading: Klein, Ramseyer, and Bainbridge, pp. 322–342.




Cases: Bayer v. Beran

Benihana of Tokyo, Inc. v. Benihana, Inc.

10/26. Class 24. Duty of Loyalty




Reading: Klein, Ramseyer, and Bainbridge, pp. 322–342.




Cases: Broz v. Cellular Information Systems, Inc.

In re eBay, Inc. Shareholders Litigation

10/27. Class 25. Duty of Loyalty




Reading: Klein, Ramseyer, and Bainbridge, pp. 342–358.




Cases: Sinclair Oil Corp v. Levien

Zahn v. Transamerica Corporation

10/28. Class 26. Duty of Loyalty




Reading: Klein, Ramseyer, and Bainbridge, pp. 342–358.




Cases: Fliegler v. Lawrence

In re Wheelabrator Technologies, Inc. Shareholders Litigation

11/2. Class 27. Good Faith




Reading: Klein, Ramseyer, and Bainbridge, pp. 358–374.




Cases: In re The Walt Disney Co. Derivative Litigation

11/3. Class 28. Good Faith




Reading: Klein, Ramseyer, and Bainbridge, pp. 374–395.




Cases: Stone v. Ritter

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11/4. Class 29. Indemnification




Reading: Klein, Ramseyer, and Bainbridge, pp. 489–502.




Cases: Waltuch v. Conticommodity Services, Inc.

Citadel Holding Corporation v. Roven

11/9. Class 30. Proxy Fights




Reading: Klein, Ramseyer, and Bainbridge, pp. 503–527.




Cases: Levin v. Metro-Goldwyn-Mayer

Rosenfeld v. Fairchild Enginge & Airplane Corp.

11/10. Class 31. Proxy Fights




Reading: Klein, Ramseyer, and Bainbridge, pp. 527–558.




Cases: Lovenheim v. Iroquois Brands, Ltd.

Crane Co. v. Anaconda Co.
State ex rel. Pillsbury v. Honeywell, Inc.
Sadler v. NCR Corporation

11/11. Class 32. Closely Held Corporations




Reading: Klein, Ramseyer, and Bainbridge, pp. 558–570.




Cases: Stroh v. Blackhawk Holding Corp.

Ringling Bros.—Barnum & Bailey Combined Shows. v. Ringling

11/16. Class 33. Closely Held Corporations




Reading: Klein, Ramseyer, and Bainbridge, pp. 570–591.




Cases: McQuade v. Stoneham

Clark v. Dodge
Galler v. Galler
Ramos v. Estrada

11/17. Class 34. Freeze-outs




Reading: Klein, Ramseyer, and Bainbridge, pp. 591–622.




Cases: Wilkes v. Springside Nursing Home, Inc.

Ingle v. Glamore Motor Sales, Inc.
Brodie v. Jordan
Smith v. Atlantic Properties, Inc.
Jordan v. Duff and Phelps, Inc.

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11/18. Class 35. Dissolution




Reading: Klein, Ramseyer, and Bainbridge, pp. 622–649.




Cases: Alaska Plastics, Inc. v. Coppock

Haley v. Talcott
Pedro v. Pedro
Stuparich v. Harbor Furniture Mfg., Inc.

11/23. Class 36. Transfer of Control




Reading: Klein, Ramseyer, and Bainbridge, pp. 649–666.




Cases: Frandsen v. Jensen-Sundquiest Agency, Inc.

Zeitlin v. Hanson Holdings, Inc.
Perlman v. Feldmann
Essex Universal Corporation v. Yates

11/24. Class 37. De Facto Merger Doctrine




Reading: Klein, Ramseyer, and Bainbridge, pp. 667–677.




Cases: Farris v. Glen Alden Corporation

Hariton v. Arco Electronics, Inc.

11/25. Class 38. Freeze-Out Mergers




Reading: Klein, Ramseyer, and Bainbridge, pp. 677–707.




Cases: Weinberger v. UOP, Inc.

Kahn v. M&F Worldwide Corp.
Coggins v. New England Patriots Football Club, Inc.
Rauch v. RCA Corporation

11/30. Class 39. Takeovers




Reading: Klein, Ramseyer, and Bainbridge, pp. 712–744.




Cases: Cheff v. Mathes

Unocal v. Mesa Petroleum Co.
Revlon, Inc., v. MacAndrews & Forbes Holdings, Inc.

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