Exam 31: Operation and Dissolution of General Partnerships

General Widget's partnership assets amount to $34,000 after liquidation. Frank, Gene, and Hank, equal partners, each contributed $3,000 into the capital pool at the inception of the business. Gene later loaned the business $5,000. The partnership owes $23,000 to creditors for inventory. Under the UPA, what will Gene get in distribution, assuming there is no agreement on the distribution of profits?

A partner is criminally liable for the crimes of her partners.

The liability of partners for a tort or breach of trust committed by any partner is unlimited, personal liability.

David, Ed, and Fred are partners in the DEF partnership. The partnership is being dissolved, having $200,000 in assets and owing $410,000 to creditors. David contributed $100,000 in capital; Ed contributed $50,000 in capital; and Fred contributed $25,000 in capital. Profits are shared equally. Which of the following is correct with regard to the responsibility of each partner?

A partner has implied authority to:

A person who represents himself to third persons as being a partner when in fact he is not, may have the liability of a partner.

A retiring partner has no way of being discharged from her existing liabilities other than by paying them off.

The UPA marshaling of assets doctrine is abolished by the RUPA.

Notification to one partner of any matter relating to partnership affairs is effective immediately as notice to the partnership.

Define dissolution under the UPA and discuss its three causes.

Under the UPA, submission of a partnership claim to arbitration requires the consent of all the partners.

Under the UPA, which of the following can be done only with the consent of all of the partners?

A partner has implied authority to hire and fire employees whose services are necessary to carry on the partnership business.

Under the RUPA, a partner in a term partnership who wrongfully dissociates before the end of a definite term cannot receive payment of a portion of the buyout price before the expiration of the term.

Any partner by himself has the power to dissolve a term partnership by giving notice to the other partners.

A person admitted into an existing partnership is personally liable for all of the obligations of the partnership arising before his admission.

David, a partner in the Speedy Delivery partnership, negligently drove his delivery truck onto the curb during a rush-hour package delivery. Marlene was injured. Against whom can Marlene collect?

Upon dissolution, a partner still has authority to complete existing contracts.

Under the UPA, upon termination of a firm, each partner is entitled to the return of his capital after partnership creditors have been paid.

ABC Partnership agrees to hire an "errand runner" 20 hours per week for the summer. Alan, a partner, interviews a college student and decides to offer her the job. But she says she needs a 40-hour-a-week job, so Alan agrees to make it 40 hours. What result?