Owen is a prominent accountant in his community.He is retiring from a partnership he has been in with several other accountants.He directs the partners to get rid of all letterhead with his name on it.Inadvertently,some of the firm's old letterhead is retained.The firm uses one of these pieces of old letterhead showing Owen as a partner to order several computers from a local business that the partnership had not dealt with previously.The business decides to sell the computers to the firm on credit.Owen is definitely liable as a partner to pay for the computers.

Question

Quizplus · Accepted Answer

Owen is not liable because he has retired and directed the removal of his name from the letterhead. The liability would depend on whether the third party was aware of his retirement and whether the firm took reasonable steps to notify third parties of his departure.

Owen Is a Prominent Accountant in His Community