Question 1

Carolee, Joanna, and Ellen form Capital City Partnership. Carolee contributes expertise; Joanna, $15,000; and Ellen, $20,000. After a year, Joanna adds $12,000 as a loan. Ten years later, Capital owes $44,000 to creditors, total assets are $112,000, and the partners decide to dissolve the business. How will the assets be distributed under the UPA, and what will each partner receive?

Accepted Answer

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Question 2

David, a partner in the Speedy Delivery partnership, negligently drove his delivery truck onto the curb during a rush-hour package delivery. Marlene was injured. Against whom can Marlene collect?

Accepted Answer

Under partnership law, a partnership is liable for the wrongful acts of a partner acting in the ordinary course of business. Therefore, Marlene can collect from both the Speedy Delivery Partnership and any partner, as partners are jointly and severally liable for the obligations of the partnership.

Question 3

Austin withdraws from a partnership and the remaining three partners decide to continue in business. Discuss the effect of the withdrawal on the partnership and on creditors rights under the UPA.

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Question 4

Bernice is withdrawing from a partnership in a state that adopted the UPA. How can she protect herself against liability on contracts the firm enters after her withdrawal?

Accepted Answer

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Question 5

Define dissolution under the UPA and discuss its three causes.

Accepted Answer

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Question 6

Shannon has just become a partner in A & R Accounting Partnership. Her capital contribution is $10,000, which she paid from her savings. Shannon:

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Question 7

a. What is the liability of the partners for contracts regarding partnership business? 
b. What is the liability of the partnership for torts committed by a partner while acting in the ordinary course of partnership business? How does this compare to the liability of a principal under respondeat superior ? Explain.

Accepted Answer

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Question 8

Does a new partner in a firm have personal liability for debts existing when he joined the firm? What should a prospective partner do to avoid unreasonable liability?

Accepted Answer

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Question 9

Jacob dissociates from the Applegate Partnership, which continues to operate. Discuss Jacob's authority to act for the partnership after his dissociation and his possible liability under the RUPA to the partnership or third parties for transactions entered on behalf of the partnership.

Accepted Answer

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Quiz 31: Operation and Dissolution of General Partnerships