[Health Food] Josh and Merida are partners and owners of J&M Health Food Store. Carson, who is a registered dietician, works for J&M on and off as a consultant, as he is very knowledgeable about the health benefits of natural herbs. Carson travels to conventions around the country and tests new products and often relays information about the new products to J&M. At a convention last month, Carson met Monte, a vitamin producer, who stated that he was glad to meet one of J&M's partners. Carson replied that the new Fresh product line was exactly what J&M needed and placed a significant order for J&M. When the Fresh product was delivered, J&M had closed the store for remodeling, and the product spoiled.
-Assume Carson pays the damages suffered by Monte. Carson then asks J&M for a share of J&M's profits, which J&M refuses. Is J&M justified in denying Carson any share of the profits?
A) Yes, even though Carson paid the debt, Carson is not a partner of J&M and is not entitled to profits.
B) Yes, even though Carson is considered a partner, he is not entitled to a share of the profits because he failed to seek approval of his partners for the deal.
C) No, Carson is now considered a partner of J&M and is entitled to a share of the profits.
D) No, even though Carson is not considered a partner of J&M, he is entitled to a share of the profits up to the amount of damages paid to Monte.
E) No, even though Carson is not considered a partner of J&M, he is entitled to a share of the profits up to the amount of damages paid to Monte and any reasonable expenses.
Correct Answer:
Verified
Q73: [Car Repair] Gordon and Leo are partners
Q74: [Mortuary Blues] Jack and Bianca had a
Q75: [Fishing Kings] Kyle and Felix have a
Q76: [Mortuary Blues] Jack and Bianca had a
Q77: [Partnership Agreement] Rufus, Sven, and Igor are
Q79: [Grooming Grievances] Andrew, Marie, and Cruz formed
Q80: [Mortuary Blues] Jack and Bianca had a
Q81: [Car Repair] Gordon and Leo are partners
Q82: [Car Repair] Gordon and Leo are partners
Q83: [Car Repair] Gordon and Leo are partners
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents