Jones is a partner in a law firm in a small town,and he is also doing legal work out of his home in the evenings for himself.Which of the following statements is correct with respect to his responsibility for the money he earns?
A)Jones has a duty to tell the other partners,but the money is his and he can continue the extra work regardless of the other partners' consent.
B)Jones has no responsibility; the money he makes through this extra work is his.
C)Such conduct will automatically dissolve the partnership,but Jones can keep what he has made.
D)If Jones did not have the consent of his partners,he must pay over all money he makes through his business at home to the partnership.
E)If Jones is a one-third partner in the law firm,he need only pay over a third of what he makes on the side.

Question

Quizplus · Accepted Answer

As a partner in a law firm, Jones has a duty of loyalty and a duty to account to his partners for any money he earns outside the firm. If he did not have the consent of his partners to engage in this extra work, he must pay over all money he makes through his business at home to the partnership. This is because the money he earns could have been earned by the firm if he had not engaged in this outside work, and he is using his skills and knowledge acquired as a partner in the firm to earn the money. Therefore, he cannot keep the money for himself without breaching his duty of loyalty to the partnership.

Jones Is a Partner in a Law Firm in a Small