Business law 3301-chapter 17
Questions and Answers 2025-2026.
Did the trial court or the appellate court agree that Killen should be personally liable to the
Hodges?
a. Yes
b. No - Answer b. No
Because the plaintiffs in this case failed to render the defendant personally liable, what choices
did they face?
a. They could appeal the case to the Supreme Court because federal laws were involved.
b. They could ask the judges of the appellate court to have the case retried.
c. They could bring a lawsuit against Strong Built International, LLC. - Answer c. They could
bring a lawsuit against Strong Built International, LLC.
Will lawsuits attempting to make a member of an LLC personally liable for some injury or action
always fail?
a. No, because virtually all states have LLC laws, which allow for exceptions to the limited
liability of LLC members.
b. Just as the name implies, a limited liability company only has value because it limits the
liability of its members. Therefore, they can never be held personally liable.
c. Actually, the majority of lawsuits against LLC members succeed in the sense that they are
typically made liable for injuries or actions caused by the LLC. - Answer a. No, because
virtually all states have LLC laws, which allow for exceptions to the limited liability of LLC
members.
Assume that the sole member-manager of an LLC hires no employees, no consultants, and does
all of the work herself. Does she have a greater chance of being held personally liable for the
injuries of her customers or clients?
a. Probably yes, because it will be hard for her to convince a court that she was not involved in,
for example, a negligent act.
b. Probably yes, because courts automatically have a bias against one-member LLCs.
c. No, because limited liability means just that—a member is not liable for any injuries that she
or he causes. - Answer a. Probably yes, because it will be hard for her to convince a court
that she was not involved in, for example, a negligent act.
Questions and Answers 2025-2026.
Did the trial court or the appellate court agree that Killen should be personally liable to the
Hodges?
a. Yes
b. No - Answer b. No
Because the plaintiffs in this case failed to render the defendant personally liable, what choices
did they face?
a. They could appeal the case to the Supreme Court because federal laws were involved.
b. They could ask the judges of the appellate court to have the case retried.
c. They could bring a lawsuit against Strong Built International, LLC. - Answer c. They could
bring a lawsuit against Strong Built International, LLC.
Will lawsuits attempting to make a member of an LLC personally liable for some injury or action
always fail?
a. No, because virtually all states have LLC laws, which allow for exceptions to the limited
liability of LLC members.
b. Just as the name implies, a limited liability company only has value because it limits the
liability of its members. Therefore, they can never be held personally liable.
c. Actually, the majority of lawsuits against LLC members succeed in the sense that they are
typically made liable for injuries or actions caused by the LLC. - Answer a. No, because
virtually all states have LLC laws, which allow for exceptions to the limited liability of LLC
members.
Assume that the sole member-manager of an LLC hires no employees, no consultants, and does
all of the work herself. Does she have a greater chance of being held personally liable for the
injuries of her customers or clients?
a. Probably yes, because it will be hard for her to convince a court that she was not involved in,
for example, a negligent act.
b. Probably yes, because courts automatically have a bias against one-member LLCs.
c. No, because limited liability means just that—a member is not liable for any injuries that she
or he causes. - Answer a. Probably yes, because it will be hard for her to convince a court
that she was not involved in, for example, a negligent act.
