Multiple Choice
[Car Repair] Gordon and Leo are partners in SafeT Car, a full service automotive repair company. Leo does nearly all of the day-to-day work as Gordon is thinking about retiring. When Leo was moving a customer's car last week, he accidentally collided with the garage door, and the door had to be replaced at a cost of $6,000. Leo recently met with BigBox stores about a potential deal by which BigBox would set up a SafeT Car shop in every BigBox store nationwide. Leo signed an agreement to open a "test" store in one BigBox store. Leo hasn't told Gordon yet, because Gordon hasn't been in the office in a month. Gordon opens The Oil Place, an express oil change company, which he plans to have his sons operate in his retirement. When Leo learns about The Oil Place, he threatens to sue Gordon for breach of duty because Leo is sick of doing all the work at SafeT Car while Gordon was apparently opening a competing business. Gordon tells Leo that he hasn't breached any duty and they don't have a written agreement that restricts Gordon from opening his own store with his sons. Gordon also tells Leo that the $6,000 for the damaged door is coming out of Leo's pocket. Leo, who's thinking about the potential deal about BigBox, tells Gordon he wants to split up the partnership.
-Does Leo have any obligation to tell Gordon about the BigBox deal?
A) No, because Gordon has chosen not to come to work and not to perform any duties.
B) No, because Gordon breached his fiduciary duty.
C) Yes, partners must disclose any material facts affecting the business.
D) Yes, but Leo only has to tell Gordon about the BigBox deal if they are going to split up the business.
E) No, although partners must disclose any material facts affecting the business, Leo does not need to tell Gordon unless he signs an agreement to place SafeT Car in every BigBox store nationwide.
Correct Answer:

Verified
Correct Answer:
Verified
Q80: [Car Repair] Gordon and Leo are partners
Q81: [Grooming Grievances] Andrew, Marie, and Cruz formed
Q82: In their partnership agreement, Tulum is responsible
Q83: Unless otherwise stated in the partnership agreement,
Q84: Under the Uniform Partnership Act regarding personal
Q85: Nadine and Lawrence are partners in a
Q86: [Partnership Agreement] Rufus, Sven, and Igor are
Q87: [Health Food] Josh and Merida are partners
Q88: [Partnership Agreement] Rufus, Sven, and Igor are
Q89: Tomlin is a partner in the accounting