Question 10. Who wins?

Little LLC, was formed under Oregon’s limited liability company statute, which provides that all Oregon LLCs must maintain sufficient cash on hand to pay any employee injury claims (Oregon’s statute doesn’t actually say that, but suppose it does for now). Despite being organized in Oregon, Little LLC does almost all of its business in neighboring Washington. Washington’s LLC statute does not require LLCs to maintain any cash reserves. One of Little LLC’s employees is injured on the job in Seattle, Washington, and sues Little LLC, claiming that it is in violation of the law by not having enough cash on hand to pay the employee’s injury claim. Little LLC defends itself by saying that it isn’t required to maintain a cash reserve because it's operating in Washington and Washington doesn’t require it. Who wins?

A. The employee wins because Little LLC is an Oregon LLC and therefore Oregon’s LLC statute applies, even when Little LLC is operating outside of Oregon.

B. Little LLC wins because, even though it is an Oregon LLC, it is doing business in Washington and therefore Washington’s LLC statute applied.

C. The employee wins because it would be unfair to allow Little LLC off the hook for the employee’s job-related injury.

D. Little LLC wins because it is against public policy to require an employer to pay for its employees’ job-related injuries.

Правильный ответ:

A. The employee wins because Little LLC is an Oregon LLC and therefore Oregon’s LLC statute applies, even when Little LLC is operating outside of Oregon.

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