Business

Baylee Marshall

14 March, 05:03

Toggle owns a controlling interest in the LMN Partnership. The partnership agreement allows sale of all, or substantially all, of the partnership's assets upon majority vote. Toggle votes his controlling interest in favor of selling an important LMN asset to a corporation that he controls at a price to be set by an independent third-party appraiser. There is notice to all partners of the proposed transaction and a partnership vote. Toggle votes using his controlling interest, in favor of the sale. Minority partners sue, alleging that Toggle has violated his obligation of good faith and fair dealing. Which of the following is true? A. Toggle has violated his obligation of good faith and fair dealing. B. Toggle has also violated his duty to avoid conflicts of interest. C. A and B. D. None of the above.