Question

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?

Answer 1

In a general partnership, partners have joint and several liability, meaning they are collectively responsible for the partnership's debts. Therefore, the partnership may have to pay for the merchandise and Amy's personal assets can be taken to fulfill the vendor's claim.

Step-by-step explanation:

a. The partnership may be liable to pay for the merchandise because partners in a general partnership have joint and several liability.

This means that each partner is personally responsible for the partnership's debts and obligations. So, even though Amy didn't authorize the order, the partnership as a whole can be held responsible.

As for the amount, the partnership would be liable for the contract price of $10,000.

b. In a general partnership, partners' personal assets can be taken to pay for the partnership's debts. So, if the partnership is unable to pay for the merchandise, Amy's personal assets can be used to satisfy the vendor's claim.

Answer 2

Amy and Lester are both weird so that's your answer.

Step-by-step explanation:

none needed