A parents' group in a small town formed an association to run a little league baseball team. Tom and Mary were members of the association, which was never incorporated. Tom was elected president of the association and ordered some uniforms for the team. When the uniforms were not paid for, the baseball supply company sued Tom and Mary for the contract price. Regarding the liability of Mary: ______.

Question

Quizplus · Accepted Answer

As a member of the association, Mary could be held liable if she authorized or ratified the purchase. Unincorporated associations do not offer the same level of liability protection as incorporated entities. Thus, Mary could be personally liable for any debts incurred by the association if she approved or agreed to the purchase of the uniforms.

A Parents' Group in a Small Town Formed an Association