Business Associations

Student Outline: kaal-ba-outline-spring-2017

Syllabus pdf download: kaal-ba-syllabus-spring-2017


Business Associations

Professor Kaal

Spring 2017


Course Description

Laws 700, Business Associations, 4 Sem. Hrs.

The course will introduce students to basic concepts in agency and partnership law as well as the law of corporations. Students will examine fundamental legal rights and duties between corporate shareholders, directors and officers. Topics include choice of business form, formation, organization, capitalization, rights, and relationships between owners and the organization.  Related state and federal topics will be covered selectively.

Class Location and Times

The class will meet in MSL 235 from 8:30 am – 10:25 am on Mondays and Wednesdays.

Office Hours

Tuesdays 1:00 pm to 2:00 pm.

Required Texts


Klein, Ramseyer, and Bainbridge, Business Associations:  Cases and Materials on Agency, Partnerships, and Corporations (Eighth Edition, Foundation Press 2012).

Klein, Ramseyer, and Bainbridge, Business Associations: Agency, Partnerships, LLCs, and Corporations 2016 Statutes and Rules (Thomson/Foundation Press 2016).

New York Times – Business Section.

Honor Code

Students are expected to comply with the Honor Code of the University of St. Thomas School of Law.


Students will be evaluated based on the quality of classroom participation and performance on the final examination.

Practice exams are mandatory but will not be graded.


The three-hour final examination will be closed book.

Session Overview

Topic Class # Page # Statutes/Rules – Cases
Introduction to Agency I 1 Restatement of the Law (Third) Agency, 1.01 – 5.04
Introduction to Agency II 2 1-16 Restatement of the Law (Third) Agency, 6.01 – 8.15, Gorton v. Doty, Gay Jenson Farms Co. v Cargill, Inc., Mill Street Church of Christ v Hogan
Agent, Liability, Ratification, Estoppel, Contract Liability 3 24-34, 47-51 Botticello v Stefanovicz, Hoddeson v Koos Bros., Atlantic Salmon A/S v Curran, Miller v. McDonald’s Corp.
Scope of Employment, Tort Liability, Independent Contractor Liability, Fiduciary Obligations 4 52-56, 64-78 Ira S. Bushey & Sons, Inc. v United States, Majestic Realty Associates, Inc. v Toti Contracting Co., Reading v. Regem, Rash v. J.V. Intermediate, Ltd., Town & Country House & Home Service, Inc. v Newbery
Introduction to Partnership I 5 UPA (1997): 201, 202, 203, 204, 301, 303, 306, 308, 401, 403, 404, 1001
Introduction to Partnership II 6 79-89 UPA (1997): 501, 502, 503, 601, 602, 701, 702, 704, 801-807, Fenwick v Unemployment Compensation Commission, Martin v Peyton
Fiduciary Obligations, Partnership Property, Rights of Partners 7 93-136 Young v Jones, Meinhard v Salmon, Sandvick v LaCrosse, Meehan v Shaughnessy, Lawlis v Kightlinger & Gray, Putnam v Shoaf, National Biscuit Company v Stroud, Summers v Dooley, Day v Sidley & Austin
Introduction to Corporations I 8 ULLCA: 101-1104

DGCL: 101, 102, 106, 107, 124, 152, 153

Introduction to Corporations II 9 DGCL: 141, 142, 145, 214, 216, 218
Introduction to Corporations III 10 DGCL: 170, 174, 220
Introduction to Corporations IV 11 DGCL: 242, 251, 262, 275
Theoretical Background, Role and Purpose of Corporations 12 251-267 A.P. Smith Mfg. Co. v Barlow, Dodge v Ford Motor Co., Shlensky v Wrigley
Promoters, Limited Liability 13 169-190 Southern-Gulf Marine Co. No. 9, Inc. v Camcraft, Walkovszky v Carlton, Sea-Land Services, Inc. v Pepper Source, Roman Catholic Archbishop of San Francisco v Sheffield
Directors, Officers, Duty of Care, Duty of Loyalty 14 312-326, 334-339 Smith v. Van Gorkom, Bayer v Beran
Corporate Opportunities, Dominant Shareholders, Ratification 15 350-368 In re eBay, Inc. Shareholder Litigation, Sinclair Oil Corp. v Levien, Zahn v Transamerica Corporation, Fliegler v Lawrence
Good Faith 16 373-398 In re Walt Disney Co. Derivative Litigation, Stone v Ritter
Derivative Actions I 17 201-225 Cohen v Beneficial Industrial Loan Corp., Eisenberg v Flying Tiger Line, Grimes v Donald, Marx v Akers
Derivative Actions II 18 225-250 Auerbach v Bennett, Zapata Corp. v Maldonado, In re Oracle Corp. Derivatives Litigation
Proxies 19 516-531 Levin v. Metro-Goldwyn-Mayer, Rosenfeld v Fairchild Engine & Airplane Corp., J.I. Case Co. v Borak
Shareholder Proposals 20 542-561 Lovenheim v Iroquois Brands, Ltd., AFSCME v AIG, Inc., CA v AFSCME Employees Pension Plan
Shareholder Abuse of Control 21 613-633 Wilkes v. Springside Nursing Home, Inc., Ingle v Glamore Motor Sales, Inc., Brodie v. Jordan, Smith v Atlantic Properties
Practice Exam Agency 22
Practice Exam Partnership 23
Practice Exam Corporations 24
Review Practice Exams 25
Makeup & Review 26


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