Exam 32: Operation and Dissolution of General Partnerships

In a partnership of A, B, and C, A commits fraud which creates a liability to the partnership of $9,000.If the three partners share profits and losses equally, A's liability to the partnership for his fraudulent act is $3,000.

Roberts, Smith, and Thomas have been partners for twenty years.The partners, however, are now collecting debts, converting assets to cash, paying creditors, and distributing remaining assets to each partner.Roberts, Smith, and Thomas are engaged in:

Which of the following describes the imposing of partnership duties and liabilities upon a person who is not a partner in an existing partnership by reason of his consenting to representation that he is a partner?

A partner may bind the partnership by her act if she has:

When one partner is notified of any matter relating to partnership affairs, it is assumed that all partners have been notified.

Respondeat superior has no application to situations where a partner commits a tort, because only the partner and not the partnership is liable.

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

Under the UPA, neither a partner who causes dissolution by wrongfully withdrawing nor a partner expelled pursuant to the partnership agreement can force liquidation of the partnership.

A person has notice of a fact if the person has reason to know it exists from all of the facts known to the person at the time in question.

Upon dissolution of a partnership, all authority of a partner to act on behalf of the partnership terminates.

Under the RUPA, any partner by himself has the power to dissolve a term partnership by giving notice to the other partners.

Winding up involves all but which one of the following?

Randy, Mona, and Richard are partners.Under the UPA, a creditor of their partnership must name all three partners as defendants in a suit on a contract obligation of the partnership.

The doctrine of marshaling of assets involves segregation of assets and considers separately the assets and liabilities of the partnership and the respective assets and liabilities of the individual partners.

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

Smarth, King, and Finkel have been partners for years, but a court of equity is now segregating and considering separately the assets and liabilities of the partnership and the respective assets and liabilities of the individual partners.This process is called:

Chuck, Betty, and Bert form CB&B Partnership to run a specialty grocery store.Bert is the day-to-day manager of the store, Betty buys the groceries, and Chuck does all the administrative work.Betty decides she would like a new car to go around and visit prospective wholesalers.She makes a contract with Big Ben Motors in the name of CB&B without consulting Chuck and Bert.CB&B and the individual partners are:

Under the RUPA, the partners are jointly and severally liable for all contract obligations of the partnership.

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

Carolee, Joanna, and Ellen form Capital City Partnership.Carolee contributes expertise; Joanna, $15,000; and Ellen, $20,000.After a year, Joanna adds $12,000 as a loan.Ten years later, Capital owes $44,000 to creditors, total assets are $112,000, and the partners decide to dissolve the business.How will the assets be distributed, and what will each partner receive?