Exam 31: All Forms of Partnership

Roma and Swain are partners in Roma & Swain Attorneys,LLP,a limited liability partnership. Roma supervises their firm's associate Taylor,who negligently fails to appear in court on behalf of Umberto,a client. Liability to Umberto rests only with

Oliana is a partner in Pacific Traders. In the majority of states,with respect to any partnership obligations that Oliana does not participate in,know about,or ratify,Oliana would be liable for

Emily is one of three partners in Fast Work,a commercial janitorial service. With respect to Emily's interest in the firm,when she dies,her heirs are most likely entitled to

The Uniform Partnership Act governs the operation of partnerships.

The intent to associate is a key element of a partnership.

A partner is liable for honest errors in judgment in conducting partnership business.

A sharing of profits from a business creates a presumption that a partnership exists.

Abby starts up Bowls Bistro to serve and sell soups for workday lunches. Abby leases space in an office building owned by Carmen. The lease requires Abby to pay Carmen a base rental of $1,250,plus 10 percent of Bowls Bistro's profits,each month. The term is two years. Abby hires Devin to take and fill customers' orders at an hourly wage of $15.00,plus tips. -Abby and Carmen are

Under some circumstances a non-partner can be regarded as an agent whose acts are binding on the partnership.

A third party can sue one of the partners of a partnership without suing all members of the partnership.

Kristin and Lindsey are partners in Mobile Devise,an online marketing firm. -Kristin signs a contract with Nature's Best Chocolate,a candy maker and seller,apparently on Mobile's behalf. The contract is binding on

In winding up a general partnership,creditors are paid before partners receive their capital contributions.

On dissolution,the creditors of the partnership,but not the creditors of the individual partners,can make claims on the partnership's assets.

Abby starts up Bowls Bistro to serve and sell soups for workday lunches. Abby leases space in an office building owned by Carmen. The lease requires Abby to pay Carmen a base rental of $1,250,plus 10 percent of Bowls Bistro's profits,each month. The term is two years. Abby hires Devin to take and fill customers' orders at an hourly wage of $15.00,plus tips. -Abby and Devin are

Stefani and Tyler agree in an exchange of e-mail to form a partnership to buy and sell real property. Their partnership agreement is legally binding

Luke and Maya form Northeast Air Express,a general partnership. The essential elements of this partnership do not include

Withdrawal from a partnership before the end of its express term constitutes a breach of the partnership agreement.

Craig,Donna,and Eve do business as FastTrak Career Consultants. Eve's relationship to FasTrak ends,but the firm continues to do business. This is

Erwin,a partner in Farm Equipment Rentals & Sales,applies for a loan with Garden Valley Bank allegedly on Farm Equipment's behalf but without the authorization of the other partners. The bank knows that Erwin is not authorized to take out the loan. Liability in the event of default will be imposed on

Dissociation normally entitles the partner to buy his or her interest from the partnership.