Exam 32: Partnerships

Gary and Herman are partners in a lawn mower repair business in Ohio.While Gary is on vacation,visiting his sister in Georgia,his sister's neighbor has trouble with her mower and Gary fixes it for her.She insists on paying him.Gary

A partnership can only be held liable for the partners' authorized acts.

Astrid and Razi formed a partnership in which they agree to share profits 60 percent to Astrid and 40 percent to Razi.Losses will be shared

Nancy was a partner of a small business.She could see that the business was beginning to fail and that it was very unlikely it would recover.Not wanting to lose her investment,she asked that the court require the partnership to dissolve since she did not have a legal right to withdraw at that time.Does a court have the authority to order a partnership to dissolve?

If Kay,a partner in an auction business,has a personal creditor who is aggressive about collecting the debt,

Lori and Dan own a small restaurant as partners.Dan works several hours a day cooking,waiting on tables,doing the books,and so forth.Dan believes he is entitled to be paid at least a standard wage for all his work since,at the present time,the part-time kitchen helpers earn more than he does! Lori claims Dan is not entitled to anything other than one-half the net profits.Is Lori right?

The rules set out in the UPA defining the liability of partners to outsiders can be modified by the partnership agreement.

Identify and briefly discuss the management rights and duties of a partner.

Jeremiah was a partner in a partnership,but he quit unexpectedly when he got his feelings hurt over an internal decision.Dissociation has occurred.

Charles and Becky are partners.If they have a disagreement,the Uniform Partnership Act will govern their respective rights with each other

Kyle,Pedro,and Madeline form a partnership.There is no agreement as to the duration of the partnership.The partnership is a partnership at will.

Dennis and Claudia were partners who operated a retail store.They agreed to end the partnership.Dennis agreed to stay at the store and oversee the going-out-of-business sale.Claudia agreed to deal with the accountants and other related matters not directly related to the hands-on operation of running the store.Claudia received notice that the store's liability policy would expire on July 1.She decided not to renew the policy and let it lapse.The going-out-of-business sale would not be completed until August 1.In July,a customer slipped and fell in the store.When Dennis learned that Claudia had allowed the liability policy to lapse,he was very upset and claimed he should not be liable for the customer's injury.Is Dennis liable to the customer? Explain.

Brock and Heidi agree to jointly run a fundraiser for the nonprofit children's hospital.Even if they don't have a formal,written agreement,they have formed a partnership.

Dusty dissociated from a partnership.To protect himself from debts of the partnership after he leaves,Dusty should

Which of the following is a rightful dissociation?

Which of the following events occurs first with respect to the ending of a partnership?

Linda,a partner,is involved in the winding-up of the partnership.A lucrative business opportunity for the partnership arises.Linda does not have the right to take on this new business.

Alicia and Ted have a written agreement wherein they will share the losses of their joint business.This agreement is strong evidence they are partners.

A partner always has the right,though not the power,to leave a partnership.

Elion was a partner in a partnership.Elion's death would be considered a wrongful dissociation.