dvuben Amy and Lester are partners in operating a store. Without consulting Amy, Lester enters into a contract to purchase$12,200 of merchandise for the store. Amy says she did not authorize the order and that she could have purchased thesame merchandise for $9,200. Amy refuses to pay for the order. The vendor sues the partners.a. Must the partnership pay for the merchandise? If yes, how much?b. Assuming the partnership is a general partnership, can Amy's personal assets be taken to pay for the merchandise?Complete this question by entering your answers in the tabs below.Required A Required BMust the partnership pay for the merchandise? If yes, how much?Partnership pay for the merchandiseRequired ARequired B >

In a general partnership, each partner has the authority to act on behalf of the partnership within…

Answered: Amy and Lester are partners in…

SWFT Corp Partner Estates Trusts

42nd Edition

ISBN:9780357161548

Author:Raabe

Publisher:Raabe

Chapter11: Partnerships: Distributions, Transfer Of Interests, And Terminations

Section: Chapter Questions

Problem 47P

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Amy and Lester are partners in operating a store. Without consulting Amy, Lester enters into a contract to purchase $10,000 of merchandise for the store. Amy says she did not authorize the order and that she could have purchased the same merchandise for $7,000. Amy refuses to pay for the order. The vendor sues the partners. a. Must the partnership pay for the merchandise? If yes, how much? b. Assuming the partnership is a general partnership, can Amy’s personal assets be taken to pay for the merchandise?
B promised that he will deliver a house and lot for the partnership to use for its manufacturing process. On the agreed date, B was not able to show the partnership the location of the house and lot. Later on, B informed the partnership that the house and lot were burned down. What is the remedy of the partnership against B? The partnership may file a civil case to compel B to pay damages. The partnership may file a civil case for judicial settlement of B. The partnership may file a criminal complaint of estafa against B. The partnership may file a criminal complaint of trespassing against B.
The partnership of Winn, Xie, Yang, and Zed has the following balance sheet: Zed is personally insolvent, and one of his creditors is considering suing the partnership for the $10,000 that is currently owed. The creditor realizes that this litigation could result in partnership liquidation and does not wish to force such an extreme action unless Zed is reasonably sure of obtaining at least $10,000 from the liquidation. Determine the amount for which the partnership must sell the other assets to ensure that Zed receives $10,000 from the liquidation. Liquidation expenses are expected to be $30,000.
Chuck, Bob, and Bert form CB&B Partnership to run a specialty grocery store. Bert is the day-to-day manager of the store, Bob buys the groceries, and Chuck does all the administrative work. Bob decides he would like a new car to drive to visit prospective wholesalers. He makes a contract with Big Ben Motors in the name of CB&B without consulting Chuck and Bert. The partnership is: a. bound by Bob's ostensible authority to buy a car. b. bound by Bob's apparent authority to buy a car. O c. not bound because buying a car is outside the scope of the partnership business. O d. bound by Bob's actual implied authority to buy a car.
2. D, E and F entered into a partnership to operate a restaurant business. When the restaurant had gone past break-even stage and started to garner considerable profits, F died. D and E continued the business without dissolving the partnership. They in fact opened a branch of the restaurant, incurring obligations in the process. Creditors started demanding for the payment of their obligations. Who are liable for the settlement of the partnership’s obligations?
Neil and Dylan are partners in a lawn mower repair business in Ohio. While Neil is on vacation visiting his sister in Georgia, his sister's neighbor has trouble with her mower and Neil fixes it for her. She insists on paying him . Neil : O a. may keep the money as this partnership is NOT a professional business pursuant to the non - professional exception rule. O b. may not accept the money because it would create a conflict of interest. O c. may keep the payment since he did the work while he was on vacation. O d. may not accept the money because it would mean he was taking a business opportunity away from the partnership. O e. must turn the money over to the partnership because he earned it doing the kind of work that the partnership does.
X is a supplier of premium coffee beans. B approached X to buy 100 kilos of the premium coffee beans. B informed X that the Coffee-is-Hot Partnership will be paying him at the end of the month. Because the partnership was very famous, X delivered the 100 kilos. Later on, X discovered that B was not a partner of the Coffee-is-Hot Partnership. What reason may X assert against the Coffee-is-Hot partnership to claim the payment for the premium coffee beans? X must go against B because B is the debtor of X. None of the above X is not required to investigate if B was truly a partner of the Coffee-is-Hot Partnership. X cannot claim from the partnership because B is not a partner.
Dan, Kaye and Umi are general partners in a merchandising firm. Having contributed equal amounts to the capital, they also agree on equal distribution of whatever net profit was realized per fiscal period. After two years of operation, however, Umi conveys her whole interest in the partnership to Jessie, without the knowledge and consent of Dan and Kaye. Can Jessie participate in the management of the partnership? What is the right of Jessie with respect to the distribution of a net profit of 360,000 pesos which was realized after the purchase of Umi’s interest?
Marco decides to take $2,000 from the partnership for the repair and record it as an expense of the partnership. He believes that this is appropriate since he needs his car to get to work every day. Is Marco behaving ethically? Why or why not? Who is affected by Marco’s decision? What other alternatives might Marco consider?
Moe, Edita, and Hunter have been operating a business together as partners without a partnership agreement for several years. Hunter unexpectedly passes away, what will most likely become of the partnership? A. The partnership will be immediately dissolved B. Hunter’s interest will automatically be divided between Moe and Edita C. Moe and Edita will need to find a new partner to take Hunter’s place D. Moe and Edita will be able to purchase Hunter’s interest from his estate
Jun and Ramon are partners in a real estate partnership. The partnership owns a piece of land which Generoso desired to buy. Generoso contacted Jun and inform him his desire to buy the land and Jun did not tell Ramon about it. Jun bought Ramon out of the partnership and afterwards sold the land to Generoso with a big profit. @ The sale of the land to Generoso is void because it was without the knowledge of Ramon O The partnership is dissolved when Jun became the sole owner O Jun is not liable to Ramon for the latter's share in the profits O Jun is liable to Ramon for the lalter's share in the profits Next Previous
B was an industrial partner. The Articles of Partnership required B that every week he will work for the partnership for not more than 40 hours a week. One day, B had to work for 50 hours a week. Among the rights of a partner, what can B avail to get payment for the extra hours of work for the partnership? a. Right to return of capital b. Right to compensation c. None of the above d. Right to share in the profits

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