Asked by
Jesus Santos
on Nov 11, 2024Verified
Messitt and McNulty spend $50,000 each to form a law partnership.On the first day,someone trips over a potted plant in their lobby and sues them for $400,000.Which of the following is true?
A) If a $400,000 judgment is against the partnership,then each partner will have to pay $200,000.
B) If a $400,000 judgment is against the partnership and if McNulty cannot afford to pay any of it,then Messitt is liable for $400,000.
C) Messitt's liability is limited to $300,000 because she owns three-quarters of the firm.
D) Each individual partner cannot be sued for more than $200,000.
E) Only McNulty is personally responsible for the damages because he was the one who put the potted plant in the office.
Law Partnership
A business entity formed by lawyers who engage in the practice of law together.
Potted Plant
A plant that is grown or displayed in a pot or other container, rather than planted in the ground.
Liability
Anything that is owed to other people or institutions.
- Acquire knowledge of the legal and financial obligations inherent in diverse business configurations.
Verified Answer
TM
Learning Objectives
- Acquire knowledge of the legal and financial obligations inherent in diverse business configurations.
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