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Erin, Jayne, and Kathryn Form a General Partnership

Question 10

Multiple Choice

Erin, Jayne, and Kathryn form a general partnership. Kathryn, while on partnership business, accidentally caused a fire that burned down Bill's house. Bill successfully sued the partnership and each of the partners and received a judgment for $500,000. Bill decided seek payment on the judgment just from Erin and Jayne, since they were known to be independently wealthy. Erin and Jayne ________.


A) must divide the payment 50-50
B) can seek an injunction to prevent collection of the judgment since they were not involved in the tortious act
C) may seek indemnification from the Kathryn, the partner who committed the tortious act.
D) can avoid paying by dissolving the partnership immediately

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