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%).

–––––––•–––––––•–––––––•–––––––•–––––––•–––––––•–––––––•–––––––•–––––––•–––––––

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.



Cases: Gordon v. Doty

Jenson v. Cargill

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




Reading: Klein, Ramseyer, and Bainbridge, pp. 12–31.

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: Mill Street Church of Christ v. Hogan

Three-Seventy Leasing Corporation v. Ampex Corporation
Watteau v. Fenwick
Botticellow v. Stefanovicz
Hoddeson v. Koos Bros.
Atlantic Salmon A/S v. Currran

Page 1 of 8

 9/7. No Class.

9/8. Class 4. 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.

9/9. Class 5. 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.

9/14. No Class.

9/15. No Class.

9/16. Class 6. 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.

9/21. Class 7. 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

Page 2 of 8

 9/22. Class 8. 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

9/23. No Class.

9/28. Class 9. 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

9/29. Class 10. 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
Prentiss v. Shelfful
Pav-Saver Corporation v. Vasso Corporation
Kovacik v. Reed
G & S Investments v. Belman

9/30. Class 11. Other Organizational Forms




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

Handout

10/5. Class 12. 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

Page 3 of 8

 10/6. Class 13. Derivative Suits



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




Cases: Cohen v. Beneficial Industrial Loan Corp.

Eisenberg v. Flying Tiger Line, Inc.
Grimes v. Donald
Marx v. Akers

10/7. Class 14. Derivative Suits




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




Cases: Auerbach v. Bennett

Zapata Corp. v. Maldonado
In re Oracl

10/12. Class 15. Charitable Giving




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

Delaware General Corporate Law § 122(9).



Cases: A.P. Smith Mfg. Co. v. Barlow

Dodge v. Ford Motor Co.
Shlensky v. Wrigley

10/13. Class 16. Piercing the Corporate Veil in Tort




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




Cases: Walkovsky v. Carlton.

10/14. Class 17. 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.

10/19. Class 18. Special Topics

10/20. Class 19. 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

Page 4 of 8

 10/21. Class 20. Duty of Loyalty



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




Cases: Bayer v. Beran

Benihana of Tokyo, Inc. v. Benihana, Inc.
Broz v. Cellular Information Systems, Inc.
In re eBay, Inc. Shareholders Litigation

10/26. Class 21. Duty of Loyalty




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




Cases: Sinclair Oil Corp v. Levien

Zahn v. Transamerica Corporation
Fliegler v. Lawrence
In re Wheelabrator Technologies, Inc. Shareholders Litigation

10/27. Class 22. Good Faith




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




Cases: In re The Walt Disney Co. Derivative Litigation

10/28. Class 23. Good Faith




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




Cases: Stone v. Ritter

In re China Agritech, Inc. Shareholder Derivative Litigation

11/2. Class 24. Indemnification




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




Cases: Waltuch v. Conticommodity Services, Inc.

Citadel Holding Corporation v. Roven

11/3. Class 25. Short Swing Profits




Reading: Klein, Ramseyer, and Bainbridge, pp. 480–489.

Securities Exchange Act of 1934 §16(b).



Cases: Reliance Electric Co. v. Emerson Electric Co.

Foremost-McKesson, Inc. v. Provident Securities Company

11/4. Class 26. Insider Trading




Reading: Klein, Ramseyer, and Bainbridge, pp. 451–464.

Securities Exchange Act of 1934 §10(b).
SEC Rules 10b-5, 10b5-1, 10b5-2



Cases: Goodwin v. Agassiz

Securities and Exchange Commission v. Texas Gulf Sulphur Co.

Page 5 of 8

 11/9. Class 27. Insider Trading



Reading: Klein, Ramseyer, and Bainbridge, pp. 464–480.

Securities Exchange Act of 1934 §14(e).
SEC Rule 14e-3(a).



Cases: Chiarella v. United States

Dirks v. Securities & Exchange Commission
United States v. O’Hagan

11/10. Class 28. Proxy Fights




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




Cases: Levin v. Metro-Goldwyn-Mayer

Rosenfeld v. Fairchild Enginge & Airplane Corp.
J.I. Case Co. v. Borak
Mills v. Electric Auto-Lite Co.
Seinfeld v. Bartz

11/11. Class 29. Proxy Fights




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




Cases: Lovenheim v. Iroquois Brands, Ltd.

AFSCME v. AIG, Inc.
CA, Inc. v. AFSCME Employees Pension Plan
Crane Co. v. Anaconda Co.
State ex rel. Pillsbury v. Honeywell, Inc.
Sadler v. NCR Corporation

11/16. Class 30. 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

11/17. Class 31. Closely Held Corporations




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




Cases: McQuade v. Stoneham

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

Page 6 of 8

 11/18. Class 32. 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.

11/23. Class 33. 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.

11/24. Class 34. 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

11/25. Class 35. De Facto Merger Doctrine




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




Cases: Farris v. Glen Alden Corporation

Hariton v. Arco Electronics, Inc.

11/30. Class 36. 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

Makeup Classes:

Class 37. 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.

Page 7 of 8

Class 38. Takeovers



Reading: Klein, Ramseyer, and Bainbridge, pp. 744–771.




Cases: Paramount Communications, Inc. v. Time Incorporated

Paramount Communications, Inc. v. QVC Network Inc.
Lyondell Chemical Company v. Ryan

Class 39. Takeovers




Reading: Klein, Ramseyer, and Bainbridge, pp. 771–808.




Cases: Omnicare Inc. v. NCS Healthcare Inc.

Hilton Hotels Corp. v. ITT Corp.
CTS Corporation v. Dynamics Corporation of America

Page 8 of 8