RULPA 303 Week 2 Business Law Paper
Question 1A:
A. Under these facts, Adam can be found personally liable for the loss even though there is a legal principle, which affords him a degree of protection. The text explains that “the liability of a limited partner, as mentioned, is limited to the capital that she or he contributes or agrees to contribute to the partnership [RULPA 502]. Limited partners enjoy this limited liability only so long as they do not participate in management {RULPA 303]” (Miller, 3-5b).
According to the case facts, “Adam abstains from active involvement but, sometimes offers Steve and Mimi general advice, in private, in all aspects of the partnership business.” Since the creditor has knowledge of this arrangement, they sue Adam because they view this as a breach of contract. Adam participated in management activities and acted more than as a limited partner. This is backed up by RULPA 303. It states that “a limited partner who participates in management will be just as liable as a general partner to any creditor who transacts business with the limited partnership. Liability arises when the creditor believes, based on the limited partner's conduct, that the …show more content…
Mimi’s husband does have a valid claim to sue the partnership as Beelzebub’s guardian. This accident occurred during the ordinary course of business. Beelzebub was injured while his mother Mimi was meeting with a client. This proves that this accident occurred over the ordinary course of business. According to the text, “In most states, the liability is essentially unlimited, because the acts of one partner in the ordinary course of business subject the other partners to personal liability [UPA 305]”(Miller, 3-2E). In addition, “Joint and several liability means that the party has the option of suing all of the partners together (jointly) or one or more of the partners separately (severally)”(Miller, 3-2E). This means that Beelzebub’s father can sue the entire partnership or individual partners in the
A. Under these facts, Adam can be found personally liable for the loss even though there is a legal principle, which affords him a degree of protection. The text explains that “the liability of a limited partner, as mentioned, is limited to the capital that she or he contributes or agrees to contribute to the partnership [RULPA 502]. Limited partners enjoy this limited liability only so long as they do not participate in management {RULPA 303]” (Miller, 3-5b).
According to the case facts, “Adam abstains from active involvement but, sometimes offers Steve and Mimi general advice, in private, in all aspects of the partnership business.” Since the creditor has knowledge of this arrangement, they sue Adam because they view this as a breach of contract. Adam participated in management activities and acted more than as a limited partner. This is backed up by RULPA 303. It states that “a limited partner who participates in management will be just as liable as a general partner to any creditor who transacts business with the limited partnership. Liability arises when the creditor believes, based on the limited partner's conduct, that the …show more content…
Mimi’s husband does have a valid claim to sue the partnership as Beelzebub’s guardian. This accident occurred during the ordinary course of business. Beelzebub was injured while his mother Mimi was meeting with a client. This proves that this accident occurred over the ordinary course of business. According to the text, “In most states, the liability is essentially unlimited, because the acts of one partner in the ordinary course of business subject the other partners to personal liability [UPA 305]”(Miller, 3-2E). In addition, “Joint and several liability means that the party has the option of suing all of the partners together (jointly) or one or more of the partners separately (severally)”(Miller, 3-2E). This means that Beelzebub’s father can sue the entire partnership or individual partners in the