Bud and Lou Own and Operate a Bakery

Essay

Bud and Lou own and operate a bakery. They each perform all of the functions in the bakery, from baking to cleaning up. They make decisions jointly and hold themselves out to the public as business equals. When starting the business, Bud contributed $60,000 and Lou $40,000 to capitalize the business. They have a written agreement stating that they will share profits equally; however, responsibility for losses will be allocated at 60 percent to Lou and 40 percent to Bud. If Helen slips and falls in the shop and gets a judgment for $100,000, how may Helen proceed?