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Business Law Discussion Questions

I’m working on a business law question and need an explanation and answer to help me learn.

1. John Anderson and Carl Bailey owned an auto repair partnership. After much negotiation, Donald Hicks accepted an offer to join the partnership.  Donald’s capital contribution to the firm was storage facility the partners planned on using to store cars.The partnership was in financial trouble before Donald joined, and a creditor sued and won a judgment against the partnership in the amount of $100,000.  This was for debts that existed before Donald became a partner.  The creditor wanted to take the storage facility and Donald’s home.  What would be the result?  Discuss.

2. Sharon and Donna were partners in an accounting partnership. Business was very good and the partnership expanded much faster than anticipated.  Alexander, a top accountant, was invited to join the accounting partnership, but he declined. Sharon and Donna indicated in an advertisement they published in a regional newspaper that Alexander was now a partner in their firm.  Alexander does not dispute the erroneous fact in the ad.  Frank extended credit to the partnership, but the partnership cannot pay. Can Frank sue Alexander? 

3. Samuel Baker and Robert Conrad started a partnership painting houses. They rented a space from John Crown for the purpose of storing their painting equipment and supplies.  Once day, Samuel was on the property to pick up some paint supplies when he got into an argument with John Crown.  Samuel, a big guy, punched John and knocked him out.Samuel loaded the pick-up truck with paint and started driving into the city.  On the way, he picked up George a hitch hiker.  Samuel ran a red light and crashed into another truck.  George was severely injured.  The partnership came to an end a month later, and Samuel was left penniless.  John and George are suing the partnership.  What result?  Discuss.


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